Commodities September 22, 2026 02:18 AM

Canada Nears Completion of Trade Pacts with Philippines and ASEAN, Targets November Finalisation

Ottawa highlights LNG capacity, infrastructure and data centre opportunities as talks pass the 90% mark ahead of a planned November visit

By Sofia Navarro
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Canadian trade officials say negotiations on separate free trade agreements with the Philippines and the Association of Southeast Asian Nations (ASEAN) have surpassed the 90% mark, with the government aiming to finalise both pacts before a scheduled high-level visit to Manila in November. Ottawa is pitching the deals as part of a wider strategy to diversify economic ties, reinforce supply chains and create openings for investment in energy, data centres and infrastructure, while declining to estimate potential investment volumes.

Canada Nears Completion of Trade Pacts with Philippines and ASEAN, Targets November Finalisation
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Key Points

  • Negotiations on separate free trade agreements with the Philippines and ASEAN are reported to be more than 90% complete; Canada aims to finalise both by a planned November visit to Manila - impacts trade and diplomatic timelines.
  • Canada is positioning its growing LNG export capacity - with more than five projects on the Pacific coast in development - as a key offering to Southeast Asia to help stabilise energy prices and supply lines - impacts energy markets and fuel-importing economies.
  • Ottawa has committed funding to support the Luzon Economic Corridor and is exploring investments in energy, data centres and infrastructure as demand for AI and digital services in the Philippines expands - impacts infrastructure, real estate and data centre sectors.

Canadian trade negotiations with the Philippines and ASEAN have reached an advanced stage, with officials describing both free trade agreements as more than 90% complete. Ottawa is pressing to have final texts ready by the time the Canadian prime minister visits Manila in November.

Speaking on the sidelines of meetings of Southeast Asian economic ministers in Manila, Trade Minister Maninder Sidhu said the pace and will on both sides of the table were the defining features of the talks. "There’s energy from both sides to get a deal done, and that’s the most important part," he said in an interview conducted during the ministerial meetings.

Sidhu framed the negotiations as part of a deliberate strategy to broaden Canada’s external economic links and to strengthen supply chains amid rising global uncertainty. "Plan A was always diversification, regardless of what happens with our partners," he said, adding that Ottawa’s push to deepen links with Southeast Asia is "not about one particular country" and is not primarily a reaction to changes in US trade policy.

Energy features prominently in Canada’s offer to regional economies. Sidhu pointed to growing liquefied natural gas - LNG - export capacity on Canada’s Pacific coast and said the country has more than five LNG projects in various stages of development, all intended to serve Asian markets. He argued that as Southeast Asian economies confront higher energy costs and supply worries linked to shipping disruptions through the Strait of Hormuz, Canadian LNG could help reduce volatility.

"Canada can play a key role to stabilise those energy prices and reinforce those supply lines," Sidhu said.

Beyond energy, Sidhu identified other sectors where Canadian investment could flow if the deals proceed. He said Ottawa has committed funding to support the Luzon Economic Corridor, described in the interview as a key manufacturing hub on the Philippines’ largest island, and highlighted opportunities in energy-related infrastructure and in data centres.

On data centres specifically, Sidhu noted Canadian interest in the Philippines’ expanding market as demand for artificial intelligence and digital services rises. He declined to put a figure on the investment that might result from a trade pact, but said such agreements typically encourage companies to move forward with new projects and partnerships by signalling government backing for closer economic ties.

While negotiators characterise the talks as largely complete, the timeline and final investment outcomes remain to be determined. The government’s emphasis on diversification and infrastructure-oriented opportunities aligns with its stated objective to shore up supply chains and attract projects in energy and digital infrastructure.


Summary

Canada says talks on free trade agreements with the Philippines and ASEAN are over 90% complete and is aiming to finalise both by a planned November visit to Manila. Ottawa is promoting its expanding LNG export capacity and sees opportunities for investment in the Luzon Economic Corridor, data centres and related infrastructure, while refraining from estimating likely investment volumes.

Risks

  • Negotiations are described as over 90% complete but not finalised, introducing timing and outcome uncertainty for potential investors and projects in energy, infrastructure and data centres.
  • Higher energy costs and supply concerns in Southeast Asia tied to disruptions through the Strait of Hormuz could continue to affect regional demand dynamics and the economics of energy-related investments.
  • Canada declined to estimate the volume of investment that might flow from the agreements, leaving uncertainty for market participants on the scale and timing of capital commitments in manufacturing, energy and digital infrastructure.

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