Manila – Canada’s trade minister, Maninder Sidhu, told Reuters on Tuesday that the country is on the brink of finalising two major free‑trade agreements – one with the Philippines and another with the Association of Southeast Asian Nations (ASEAN). Both deals are reported to be more than 90% complete, and Ottawa hopes to have them signed before Prime Minister Mark Carney’s scheduled visit to Manila in November.
Why the agreements matter for Canada and Southeast Asia
Sidhu emphasized that the push for these accords is part of Canada’s broader strategy to diversify economic ties and strengthen supply chains amid growing global uncertainty. “Plan A was always diversification, regardless of what happens with our partners,” he said, adding that the effort is not driven by any single country or by shifts in U.S. trade policy.
Energy is the centerpiece of Canada’s value proposition. The minister highlighted the country’s expanding liquefied natural gas (LNG) export capacity, noting that Canada currently has more than five LNG projects at various stages of development on its Pacific coast. These projects are positioned to supply Asian markets seeking stable, affordable fuel sources.
Energy security and price stability
Many Southeast Asian economies rely heavily on imported fuel and have faced higher energy costs and supply disruptions, especially after recent interruptions to shipping through the Strait of Hormuz. Sidhu argued that Canada can help stabilise regional energy prices and reinforce supply lines, offering a reliable alternative to volatile markets.
Investment beyond energy
In addition to energy, Canada has pledged funding to support the Luzon Economic Corridor, a key manufacturing hub on the Philippines’ largest island. The minister also pointed to growing opportunities in the Philippines’ data‑centre sector, as demand for artificial intelligence and digital services rises across the region.
While Sidhu declined to estimate the exact amount of investment that could flow from a trade agreement, he noted that such deals typically encourage companies to pursue new projects and partnerships by signalling strong government support for closer economic ties.
Looking ahead
Both Canada and the Philippines have expressed optimism that the agreements will deepen commercial ties, create jobs, and enhance energy security for the region. The finalisation of the ASEAN pact would extend these benefits to a broader group of Southeast Asian nations, further cementing Canada’s role as a reliable trade partner.
With the November visit of Prime Minister Carney on the horizon, officials on both sides are working to iron out any remaining details, aiming for a swift conclusion that could set the stage for increased trade, investment, and cooperation in the years ahead.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
