Ottawa is hoping to begin exploratory talks with Manila on the proposed free-trade agreement (FTA) between the Philippines and Canada this year, Canadian Ambassador to the Philippines Neil Reeder said on Tuesday.
“Both countries are now looking at dates for exploratory discussions for a possible FTA; and we’re going to determine the scope of the agreement, the degree of ambition on both sides and the sectors of interest. We’d like to advance discussions in this administration,” said Reeder during a lunch with members of the media.
The ambassador said the Philippines-Canada FTA would be beneficial for the business communities of both nations, as the Philippines can serve as the “gateway” to the rest of Asean for Canadian firms.
“We do not have any FTA with any Asean nation as of the moment. We have 11 FTAs with other countries, but in Asean, we’re only in exploratory talks [aside from the Philip-pines] with Thailand. We see great opportunity with the Philippines, and we’re glad that the Department of Trade and Industry decided to open this up for discussion,” Reeder added.
Considering the market access and substantial export boost that an FTA will provide, Reeder said he hopes that the first session of exploratory talks can take place this year.
Reeder added that Canada is ready to help the Philippines in boosting the capacity of its trade-negotiating panel.
He said the Philippines may encounter “capacity issues” in undertaking FTA negotiations, as the Philippines is now also eager to conclude several bilateral FTAs.
If the Philippines moves forward with an FTA, the North American country will give the country access to its Canadian Trade and Development Facility (CTDF).
The CTDF is extended by Canada to countries it is negotiating an FTA with to help them in training trade negotiators and other manpower needs. The facility comes with an undisclosed financial support.
As a step toward concluding an FTA, the Philippines and Canada are also going to upgrade their Foreign Investment Promotion and Protection Agreement (Fipa).
The Philippines-Canada Fipa has not been updated since 1996. Increased investments will ensue after an FTA is concluded, thus, entailing the need for better schemes to protect investments, Reeder explained.
The Fipa between the Philippines and Canada is aimed at protecting one country’s trade and investment from domestic policies.
Bilateral trade with Canada stood at C$1.8 billion in 2014.