By Justine Irish D. Tabile, Reporter
THE PHILIPPINES and Canada are viewed as complementary markets well-suited for a free trade agreement (FTA), with a prospective deal expected to help the Philippines stay competitive with regional peers like Indonesia, Christopher A. Ilagan, president of the Canadian Chamber of Commerce of the Philippines, told BusinessWorld.
“In agriculture, for example, they grow wheat, and we need wheat for our bread, while they do not have tropical fruits, so that alone is a good reason why there should be an FTA,” he said.
He said there is also an opportunity for Philippine manufactured goods like semiconductors to penetrate the Canadian market.
“The Philippines also remains the largest source of business process outsourcing for Canada, largely because of our English-speaking population,” he said. “We have seen many Canadian companies actually set up their back-office operations here. I just imagine that growing potentially over time,” he added.
“From a Philippine standpoint, just to retain our competitiveness, we see all our neighbors getting all of these bilateral agreements with the European Union and even Canada,” he said. “These are the peers that we are being compared to, but if they have better access to the markets that we are trying to compete in, our competitiveness in the Philippines will be affected.”
He said Indonesia has already concluded negotiations for FTAs with the EU and Canada.
The Philippines and Canada are currently in “exploratory talks” for an FTA, Trade Undersecretary Allan B. Gepty said via Viber.
“Our target is to finish it in December with the end view of launching the negotiations,” he added.
Mr. Ilagan said Philippine goods have a built-in market of Filipinos in Canada, who can improve their access to goods from the Philippines with the conclusion of a trade deal.
“Ultimately, as we look at the larger geopolitical and geoeconomic environment, it’s becoming more and more important for Canada and the Philippines to expand the relationships they have bilaterally,” he added.
In 2023, bilateral merchandise trade stood at $3.4 billion, while 1 million Canadians of Philippine heritage reside in Canada, the chamber estimated.
“We truly hope that it will happen, but at the same time, we have to make sure that the process runs the way it should,” Mr. Ilagan said.