Canada ramps up trade and development with PH, earmarks P3.2 billion

Canada is stepping up its economic and development engagements with the Philippines, with a free trade deal that is expected to be finalized in 2026 and the provision of CAD76.4 million or P3.2 billion worth of assistance, as part of its push to tap into new markets and strengthen its alliance with Manila, a top Canadian official said Friday.

Ottawa is also providing additional humanitarian aid to the Philippines amounting to CAD550,000 or P23 million to help in the ongoing disaster relief operations in Northern and Central Luzon, which was battered by Typhoon Uwan (Fung-Wong).

The fresh aid brings to CAD1.2 million or P53.3 million the total number of Canadian funds allocated to assist communities in areas affected in the recent powerful quakes and storms that killed dozens across the Visayas region.

Randeep Sarai, Canada’s Secretary of State for International Development, stressed that the Indo-Pacific region, including the Philippines, “is central to our efforts,” specifically on trade, security and agriculture.

“We need to find new ways to build mutual economic benefits and international assistance can be an important tool that helps address barriers in trade and investment so we can improve progress together,” Sarai told a small group of journalists, which included GMA News Online.

US President Donald Trump has been threatening Canada’s economy with steep tariffs and even suggested Canada to be its 51st state.

Sarai said he believes that an economically prosperous Philippines, would bring economic growth to Canada.

On the security front, both nations have ramped up their defense ties, with the recent signing of an accord that allows their militaries to train together and conduct joint patrols in areas being claimed by the Philippines in the disputed South China Sea, a regional flashpoint.

While negotiating a trade deal with the Association of South East Asian Nations (ASEAN), of which the Philippines is a member, parallel talks are ongoing to finalize a similar accord with Manila.

The goal is to reach an agreement next year, Sarai said, adding that Canada remains bullish on the Philippines despite reports on massive corruption, such as anomalies on the government’s flood control projects that involved powerful politicians and public works officials.

“Together, we're strengthening our partnerships to build economic resilience, support greener solutions and foster stability, creating inclusive growth so that everyone can benefit,” Sarai said.

Demonstrating its commitment to the Philippines’ growth, Sarai unveiled Canada’s 12 development programs to improve the country’s disaster risk management and resilience and investments on water and food security, energy, protection of fragile ecosystems, reducing greenhouse gas emissions, agriculture, infrastructure and assistance to small and medium enterprises (SMEs).

It also pledged to work with the Philippine government to improve access to sexual reproductive health services and support children suffering from malnutrition and stunting, as well as resources for children who are affected by conflict.

“These initiatives will build on Canada's long-standing partnerships with the Philippines, which we've developed over the course of 75 years of diplomatic relations,” he said.

Canada’s announcement of its new development assistance amounting to CAD76.4 million came on the heels of Trump’s move to shut down the US Agency for International Development (USAID), which in part affected a number of programs in the Philippines.

Trump in February dismantled the agency and its satellite offices abroad, halting all its development assistance and relief efforts, citing high costs and that overseas spending must be aligned with his "America First" policy.

After USAID’s closure, Washington’s embassy in Manila established a US Foreign Assistance Section that focuses more on programs that “save lives and strengthen the Philippines' resilient and independent economy.”

Sarai admitted “it's very hard to fill that void” left by the USAID when asked if Canada could step in and assist in projects previously funded by the US agency in the Philippines.

However, he said multilateral government partnerships, in cooperation with the private sector, could help fill the gap.

“What we're working on is maybe consolidating more and do more - more trading partners, getting private capital involved, as well partnering up with other like-minded countries or other developing countries - that now want to help in development and that's the areas we're exploring,” he said. — BAP, GMA Integrated News