Exploratory discussion for possible free trade agreement (FTA) between the Philippines and Canada is set to start before the year ends to further boost bilateral trade between the two countries.
Canadian Ambassador Neil Reeder said bilateral merchandise trade between the two countries is expected to be strengthened with the signing of the FTA, which is seen as a major economic growth driver for both trade-oriented countries.
Reeder said during the Canadian Chamber of Commerce of the Philippines' 148th Canada day celebration at Seda Abreeza Hotel that "exporting goods and products between Philippines and Canada and vice versa will be made easier soon as tariff of some export commodities will be pulled down," adding the agreement will provide both countries a win-win solution.
He said exploratory discussion of FTA is set to start this year but no official date yet as to when it will commence.
Canadian Prime Minister Stephen Harper announced the launching of the possibility of exploring the FTA after the three-day state visit to Canada of President Benigno Aquino III last May 7-9.
Official Canadian data showed that bilateral trade grew by an annual 2.5 percent to C$1.8 billion in 2014. Canadian merchandise imports from the Philippines came in at around C$1.24 billion, while a total of C$569.5 million is recorded for Canadian exports to the Philippines.
At present, Canadian Minister of International Trade Ed Fast and Senator Tobias Enverga Jr. are leading a trade mission to Manila and Cebu, accompanied by representatives from 51 firms in the agriculture and agri-food, defense and security, information and communications technology, infrastructure, and sustainable technology industries.
"Our actions towards doing a trade mission here in Mindanao depends on the progress of the peace process in the island," Reeder said.
The Philippines is considered a "priority market" in Canada's Global Markets Action Plan, a blueprint for creating jobs and spurring economic growth through trade.
The comprehensive FTA, once approved, will be the Canada’s first trade agreement with a country from the Southeast Asia.
Meanwhile, the Philippines has FTAs with China, Japan, New Zealand, South Korea, Australia and other Asian countries under the Brunei Darussalam, Indonesia, Malaysia, Philippines-East Asean Growth Area.
The country is also working on getting trade agreements with other nations like Chile and Mexico.
The FTA is expected to solve problems of limited trade of products and services and expensive charges of the export commodities among countries.