Trade and investment relations will be high on the agenda of Manila and Ottawa when President Aquino makes his official visit to Canada, with both nations expressing interest to forge a bilateral free- trade agreement (FTA).
The Department of Trade and Industry-Industry Development and Trade Policy Group, led by Undersecretary Adrian S. Cristobal Jr., already visited the North American country last week as a part of the preparatory committee for the Chief Executive’s visit.
Cristobal said initial discussions centered on a possible bilateral FTA.
“Since our sectors are complementary and we both have strategic interests, we looked into the possibility of having an FTA. We opened up that topic,” Cristobal said.
Canada has already marked the Philippines as a “priority market” in its Global Markets Action Plan, the Canadian government’s global strategy in expanding its trade and investment relations.
Another major highlight of the meeting is the intent of both nations to review its Foreign Investment Protection Agreement (Fipa).
The Fipa is a bilateral agreement aimed at protecting and promoting foreign investment through legally binding rights and obligations for both countries.
According to the Canadian government’s web site, Fipas set out a range of obligations that host governments pledge to uphold, covering nondiscriminatory treatment, expropriation, transfer of funds, transparency, due process and dispute settlement.
The Fipa between the Philippines and Canada is aimed at protecting one country’s trade and investment from domestic policies enforced in the other that may endanger foreign investments. In the Philippines-Canada Fipa, for example, neither country can impose a local-content level as a requirement to making an investment.
President Aquino will be visiting Canada from May 7 to 9, and will meet with Canadian Prime Minister Stephen Harper to discuss a range of political and economic issues.
Bilateral merchandise trade between Canada and the Philippines amounted to $1.7 billion in 2013, up 14.6 percent over the previous year.
Canadian exports to the Philippines reached $593 million in 2013, up from $527.9 million in 2012.
Canada’s top exports to the Philippines are meat, wood and related products, and cereals. Top merchandise imports were electrical machinery and equipment, precision and technical instruments, and machinery.
Catherine N. Pillas