Trade Agreements Between Philippines and Canada: Benefits and Challenges

The Philippines and Canada have a long-standing relationship that dates back to the 1950s. With a shared history of colonialism, both countries have developed a strong bond that has transcended cultural differences and geographical boundaries. This relationship has led to various trade agreements between the two countries, aimed at strengthening economic ties and increasing trade.

In this article, we will take a closer look at the benefits and challenges of these trade agreements between the Philippines and Canada.

Background

In 2018, the total bilateral trade between the Philippines and Canada reached $1.3 billion, with the Philippines exporting mainly electronic products, agricultural goods, and minerals, while Canada exported machinery, vehicles, and pharmaceutical products. Canada is the Philippines` 19th largest export market, while the Philippines is Canada`s 29th largest export market.

In June 2017, the two countries signed a Trade and Investment Cooperation Agreement (TICA), aimed at increasing bilateral trade and investment. The agreement covers areas such as trade in goods, services, investment, intellectual property, and technical cooperation.

Benefits

One of the main benefits of the trade agreements between the Philippines and Canada is increased trade. These agreements provide a framework for businesses in both countries to trade with each other, promoting economic growth and contributing to job creation.

The agreements also provide opportunities for businesses to access new markets and expand their reach. For example, Philippine exporters can benefit from Canada`s strong consumer market, while Canadian companies can take advantage of the Philippines` strategic location and skilled workforce.

In addition, the trade agreements provide a platform for the exchange of knowledge, technology, and best practices, leading to improved competitiveness and productivity for businesses in both countries.

Challenges

Despite the benefits, the trade agreements between the Philippines and Canada also face challenges. One major challenge is the differences in regulatory frameworks and standards between the two countries. This can create barriers to trade, making it difficult for businesses to navigate the regulatory landscape and meet the requirements of both countries.

Another challenge is the lack of awareness among business owners about the trade agreements and the opportunities they provide. The Philippines and Canada need to work together to increase awareness about the trade agreements and promote the benefits to businesses.

Conclusion

Trade agreements between the Philippines and Canada have the potential to drive economic growth and create new opportunities for businesses in both countries. However, to fully realize the benefits, both countries need to work together to address the challenges and promote the agreements to business owners.

The Philippines and Canada have a long history of cooperation and partnership, and by working together, they can build a stronger economic relationship that benefits both countries.