The Government of Canada, Foreign Affairs, Trade and Development Canada reported on May 8, 2015 that Prime Minister Stephen Harper and President Benigno Aquino III of the Philippines announced the launch of exploratory discussions that may eventually lead to the two countries striking a bilateral free trade agreement. The Philippines is an important partner for Canada and as trade continues its steady growth it is a priority emerging market under the Government of Canada’s Global Markets Action Plan. With approximately 100 million consumers and a GDP of $315 billion in 2014, the Philippines is one of the fastest growing marketplaces in Asia. It would also provide a gateway to the dynamic and high-growth Association of Southeast Asian Nations region for Canadian exporters. Goldman Sachs estimates that by the year 2050, the Philippines will be the 14th largest economy in the world from 39th presently. This past year, the Philippines was Asia’s second-fastest growing economy behind China.
What are the main industries in the Philippines?
Already a destination for business process outsourcing (BPO) notable key industries in the country include aerospace, agriculture, construction & infrastructure, environmental infrastructure & waste, mining & metals and telecom.
The two countries have common interest in agri-food, transport, energy, infrastructure, education and defence and security and have pledged to explore ways to modernize trade and investments.
Projects for airports, express ways, and mass and light railway transit are being proposed by the Philippine government to aid in reducing the infrastructure deficit. The EDC reports “the present regime has demonstrated its commitment to foster a business friendly environment by focusing on fighting corruption and introducing reforms such as lowering corporate tax rate (35% to 30%) and reducing the time and cost to trade by improving its electronic customs systems, adding such functions as electronic payments and online submission of declarations???.
Imports into Canada from the Philippines have been steadily growing in the past 5 years
5-year trade between Canada and the Philippines:
*Excerpt from Government of Canada, Foreign Affairs, Trade and Development Canada, May 2015.
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