The Philippine Nickel Industry Association (PNIA) said the country remains a key supplier, with its members accounting for about 73% of national output, totaling 37.81 million dry metric tons (DMT) in 2025.

“The Philippines remains a major player in the global nickel market,” said Charmaine Olea-Capili.

Nickel demand is expected to grow steadily, driven by electric vehicles, renewable energy, and infrastructure, according to the International Energy Agency.

The Philippines, which ranks sixth in global nickel reserves, continues to supply key markets, with China accounting for 66% of exports in 2025—down from 78% in 2024 as buyers diversify sourcing.

PNIA cited opportunities from supply chain diversification, emerging market demand, and increased investments in processing. However, near-term risks include potential oversupply, evolving battery technologies, and slower EV adoption.

Recent policy reforms, including Republic Act No. 12253, are expected to improve the investment climate by providing a clearer fiscal regime.

At the same time, the industry is advancing ESG initiatives and regional cooperation, including collaboration with Indonesia to strengthen supply chains. PNIA said continued improvements in infrastructure, energy readiness, and policy alignment will be key to sustaining growth.

The twin developments come at a time of heightened geopolitical uncertainty — from tensions in the South China Sea affecting the Philippines’ security outlook to shifting economic alignments in North America that are prompting Canada to diversify its trade and strategic partnerships.

Against this backdrop, Manila and Ottawa are moving to strengthen both defense coordination and economic integration as part of a broader effort to reinforce a rules-based order in the Indo-Pacific.

Undersecretary for Policy Leo M. Herrera-Lim, who led the Philippine delegation, pointed to the growing momentum in bilateral ties, citing the recently concluded visiting forces pact and progress in trade negotiations as key milestones.

“The Philippines considers Canada a credible, reliable, and principled partner, in supporting both our bilateral and collective efforts in promoting peace and security in the region,” he said.

“We share Canada’s enthusiasm in increasing and further exploring other areas of cooperation,” Undersecretary Herrera-Lim added.

Assistant Deputy Minister for Indo-Pacific Weldon Epp, who led the Canadian delegation, also underscored the importance of closer collaboration.

As vibrant democracies, he said, both countries’ values and interests are aligned, noting the need to work together to advance mutual priorities.

The SOVFA, concluded in November 2025, allows Canadian troops to train and participate in exercises in the Philippines and vice versa, placing Canada alongside existing Philippine defense partners such as the United States, Australia, Japan, and New Zealand. The agreement is seen as a concrete step toward strengthening deterrence, enhancing disaster response coordination, and expanding maritime security cooperation.

The JCBC meeting also highlighted progress toward a bilateral free trade agreement — a move that reflects both countries’ interest in diversifying markets and building more resilient supply chains.

For Canada, expanding economic links with Southeast Asia aligns with its Indo-Pacific Strategy and efforts to reduce reliance on traditional trade partners.

For the Philippines, deeper access to Canadian markets supports its push to attract investments and position itself as a gateway to the region.

Delegates discussed expanding cooperation in energy security, critical minerals, and cybersecurity — areas that are increasingly strategic as global supply chains shift and countries seek trusted partners for resource development and digital infrastructure.

A relationship anchored in people and trade

Canada-Philippines relations have steadily broadened over the past decades, supported by strong people-to-people ties and growing economic exchanges.

Two-way merchandise trade reached roughly US$3.4 billion in 2023, with Philippine exports estimated at about US$2.2 billion and Canadian exports at around US$1.2 billion. Services trade has also been significant, valued at approximately C$2.6 billion in 2023, making the Philippines Canada’s second most important export market in ASEAN.

Canadian firms continue to maintain a presence in Philippine economic zones, employing thousands of workers in sectors such as electronics, IT-BPM, and manufacturing.

Canada has also committed more than C$76 million in development funding for projects in climate resilience, disaster risk reduction, and inclusive growth.

Since 1986, Ottawa has provided over C$1 billion in official development assistance to the Philippines, supporting governance programs, climate-smart agriculture, public health, and peace-building initiatives, particularly in the Bangsamoro region.

Beyond trade and development, the relationship is reinforced by migration and education links. Canada hosts a large and growing Filipino community, estimated at close to one million people, while tens of thousands of Filipinos study in Canadian institutions each year.

Responding to an evolving global landscape

Both sides acknowledged the rapidly changing international environment and reaffirmed their commitment to upholding international law, freedom of navigation, and stability in the Indo-Pacific — issues that have taken on greater urgency amid tensions in the South China Sea.

The JCBC, created in 2012, serves as a platform to review progress and identify new areas of cooperation. At the latest meeting, officials from both countries also discussed collaboration in labor and migration, consular affairs, health, education, space, and indigenous peoples’ programs.

They also reaffirmed shared support for a rules-based international order and closer coordination as partners in multilateral platforms such as the United Nations, APEC, and ASEAN-related mechanisms.

Other senior members of the Philippine delegation included DICT Undersecretary Julius Gorospe, DFA Office of American Affairs Assistant Secretary Raquel R. Solano, Philippine Ambassador to Canada Jose Victor V. Chan-Gonzaga, DFA Maritime and Oceans Affairs Assistant Secretary Emmanuel Donato K. Guzman, DENR Assistant Secretary Noralene Uy, and DEPDev Assistant Secretary Jonathan Uy.

The Canadian delegation included Canadian Ambassador to the Philippines David Hartman and Jason Tolland, Special Advisor to Global Affairs Canada for the Indo-Pacific.

Export Development Canada (EDC) has officially opened its new office in Manila, marking a significant milestone in strengthening Canada-Philippines trade ties and enhancing Canadian companies’ opportunities in the Indo-Pacific region.

“One of our strategic priorities was to grow business for Canadians in the Indo-Pacific region,” said Mairead Lavery, EDC president and chief executive officer.

Lavery highlighted that EDC’s presence in Manila represents the only foreign export credit agency from a G7 country in the Philippines, underscoring its historic significance during Canada’s largest delegation visit to the country.

“We’ve also opened offices in Jakarta, in Tokyo, [and] in Seoul. So we’re really trying to come into the region,” she added.

The Manila office provides Canadian businesses a gateway to expand operations and explore investment opportunities in the Philippines, furthering economic collaboration between the two nations.

FTA negotiations set for January

On the heels of the EDC office opening, Canadian Minister Mary Ng announced that exploratory talks for a Free Trade Agreement (FTA) between Canada and the Philippines will commence in January 2025.

Ng, who led the Team Canada Trade Mission (TCTM) to the Philippines from December 4 to 6, emphasized the importance of such agreements in providing predictability for businesses.

“The reason it’s important is because businesses always look for predictability. FTAs give us the rules of engagement, and I’m very much looking forward to those negotiations, and we are launching exploratory talks right away,” she said.

Ng also pointed to ongoing negotiations for an FTA between Canada and the Association of Southeast Asian Nations (ASEAN), signaling Canada’s broader engagement in the region.

“I believe that the teams are going to get together at the very beginning of the new year. We’re already in December so the new year is only a month away, and they’re going to begin doing that work,” she said.

Ng outlined key areas of potential cooperation between Canada and the Philippines, including trade, energy, tourism, digital innovation (AI), food and agriculture, critical minerals, and green mining.

“You’re already seeing the interest in the Philippines and that already will give us a lot of momentum for the FTA discussions,” she said.

Canada’s bilateral trade with the Philippines is currently valued at approximately $5.6 billion, comprising $3 billion in merchandise trade and $2.6 billion in services, illustrating the robust economic relationship between the two nations.