Canada is transforming our economy to be less reliant on a single trading partner and more resilient to global shocks. Southeast Asia is one of the world’s fastest-growing economic regions and a key partner in Canada’s effort to secure new trade partners, attract new investment, and create more choice and lower costs for all Canadians.
To these ends, the Prime Minister, Mark Carney, travelled to Manila, Philippines, to represent Canada as Guest of the Chair at the 49th Association of Southeast Asian Nations (ASEAN) Summit and to hold a bilateral visit with the President of the Philippines, Ferdinand Marcos Jr.
The Prime Minister announced the substantial conclusion of negotiations toward an ASEAN-Canada free trade agreement (ACAFTA). This is a transformative agreement that will create more choice, more customers, and greater sovereignty for Canadians. ASEAN has a population of almost 700 million people and an economy of close to $6 trillion. The agreement will expand Canada’s integration into Asian supply chains and create more predictable conditions for Canadian workers and businesses. Once in force, the ACAFTA is expected to add nearly $2 billion to Canada’s GDP and create nearly 14,000 Canadian jobs, particularly in agriculture and manufacturing. The remaining steps will be completed as quickly as possible, with the ambition of signing the agreement in 2027.
The Prime Minister announced $5 million in assistance to help ensure that every economy across ASEAN has the ability to support the agreement’s swift ratification and to equally benefit from it once in force.
During the bilateral visit, Prime Minister Carney and President Marcos Jr. advanced the Canada-Philippines Strategic Partnership. They announced the conclusion of negotiations for a Canada-Philippines free trade agreement, just one year after they announced their intention to pursue it. Both countries are now working toward its signature in 2027. The Philippines has an economy of $680 billion and a market of more than 110 million people, and it is one of the fastest-growing economies in Asia. Once in force, this agreement could increase exports up to three times by 2035, and provide Canadian businesses the access and certainty they need to compete and win in this market, particularly in agriculture and forest products.
In Manila, the Prime Minister announced multiple new joint measures to reinforce Canada’s defence and security cooperation with the Philippines, including closer cooperation between our Armed Forces, the launch of a new cyber security dialogue, and steps toward agreements on customs cooperation and the protection of sensitive information. The Prime Minister announced that Canada will be extending the Dark Vessel Detection (DVD) program until 2033 to continue combatting illegal, unreported, and unregulated fishing activities. The DVD platform, developed in partnership with MDA Space, uses satellites to detect and track vessels that have turned off their location-transmitting devices.
Prime Minister Carney also announced $26 million in investments to support closer ties between Canada and the Philippines in nuclear security and safety, climate-resilient agriculture, community resilience, and food security and infrastructure, including in the G7-supported Luzon Economic Corridor.
During his visit, the Prime Minister welcomed the announcement of the following Canada-Philippines commercial agreements:
- Memorandum of understanding (MOU) between Ocean Supercluster, the Makati Business Club, and the University of the Philippines Visayas to strengthen collaboration in the development of ocean technologies.
- MOU between Draganfly Inc. and Razon Group to bring Canadian drone technology, training, infrastructure development, and investment to the Philippines, which will support maritime and port operations, critical infrastructure protection, and disaster response capabilities across the country.
- MOU between JCM Power and the Aurora Pacific Economic Zone Authority to support investments in renewable energy projects that will supply power to manufacturers, industrials, and data centres in the Philippines.
Canada is building our strength at home and diversifying our partnerships abroad. Prime Minister Carney will drive this mission forward in Cambodia and China.
Quotes
“In a more dangerous and divided world, a dense web of connections holds strong. With the Philippines, we concluded a new free trade agreement in just one year – creating new opportunities for our farmers, ranchers, foresters and miners, and putting us on track to triple our exports by 2035. With ASEAN, we are opening a market of nearly 700 million people through a landmark free trade agreement. Two agreements in one year: that is the speed and ambition this moment demands. That is how we build more choice, more customers, and greater sovereignty for Canadians.”
— The Rt. Hon. Mark Carney, Prime Minister of Canada
“Trade diversification is our Plan A, and we are delivering new agreements that give our businesses unprecedented access to new markets. We have substantially concluded free trade negotiations with ASEAN and concluded negotiations with the Philippines, expanding opportunities for Canadian businesses across one of the world’s fastest-growing regions, home to nearly 700 million consumers and a combined economy of close to $6 trillion. These agreements will help reduce tariffs and other trade barriers, supporting Canadian businesses as they grow, compete, and reach new customers across Southeast Asia.”
— The Hon. Maninder Sidhu, Minister of International Trade
Quick facts
- At the ASEAN Summit, Prime Minister Carney will be joined by the Minister of International Trade, Maninder Sidhu, and the Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), Rechie Valdez.
- At the Summit, Prime Minister Carney will announce investments to strengthen cooperation with ASEAN partners on public safety, ocean protection, nuclear security, and clean energy. Together with the $5 million in technical assistance to support the ACAFTA, these investments total over $15.9 million.
- As a group, ASEAN represented Canada’s fifth-largest merchandise trading partner in 2025, with annual two-way trade valued at $52.5 billion, up 22.7% from 2024.
- Negotiations toward the ACAFTA began in 2021. At last year’s ASEAN Summit in Kuala Lumpur, Malaysia, Prime Minister Carney announced $25 million in technical assistance to ASEAN nations for the agreement’s effective implementation.
- Today’s announcements with the Philippines build on the progress delivered during President Marcos Jr.’s visit to Canada in July 2026, where the two leaders established the Canada-Philippines Strategic Partnership, committed to concluding free trade negotiations by the end of the year, and announced new measures to deepen cooperation, including:
- Enhanced cooperation in energy and natural resources through a Joint Declaration of Intent on Energy and Natural Resources Cooperation, aimed at supporting responsible resource development and strengthening resilient supply chains across the Indo-Pacific.
- Deepened defence cooperation through the implementation of the Status of Visiting Forces Agreement, as well as the signing of a Mutual Logistics Support Arrangement and a Statement of Intent on Strengthening Defence Cooperation, enabling closer military collaboration, joint exercises, and cooperation on maritime security.
- In 2025, two-way merchandise trade between Canada and the Philippines totalled $3.4 billion, up 7.4% from 2024. Canada’s stock in direct investments abroad in the Philippines in 2025 was approximately $1.7 billion, up 44% from 2024.
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