The Philippines is a priority emerging market under Canada's global markets action plan; experiencing strong economic growth—6.1 percent in 2014, moderating from 2013’s GDP level (7.2 percent growth); an attractive market for Canadian exporters as one of the most dynamic and fastest-growing countries in the region, with a population of approximately 100 million people; and a gateway for Canadian businesses in Southeast Asia and through ASEAN.

1. CANADA AND PHILIPPINES
RELATION

2. • a priority emerging market under Canada's global markets action plan;
The Philippines is:
• experiencing strong economic growth—6.1 percent in 2014, moderating
from 2013’s GDP level (7.2 percent growth);
• an attractive market for Canadian exporters as one of the most
dynamic and fastest-growing countries in the region, with a population
of approximately 100 million people; and
• a gateway for Canadian businesses in Southeast Asia and through
ASEAN

3. Canadian Commercial Interest in the Philippines
• Canadian merchandise exports to the Philippines were valued at $569.5 million
• major exports include: ores, wood and articles of wood, meat, and fertilizers.
Canadian merchandise imports from the Philippines were valued at about $1.2
billion (up 9.0 percent) and were led by: machinery, including electric, rubber,
scientific and precision instruments, articles of iron and steel, and apparel.

4. • Agriculture and processed foods.
The Philippine Association Of Flour Millers
(PAFMILL)
• Aerospace, Defence and Security
Philippines is the only Southeast Asian country with
direct air connections to Canada.
Legislation enacted in 2012 provided the equivalent of C$1.9
billion in caqpital upgrades for the Armed Forces of the
Philippines (AFP’s) Modernization Programme

5. • A number of Canadian companies are pursuing opportunities under the
programme, supported by a memorandum of understanding (MOU) between the
Canadian Commercial Corporation (CCC) and the Philippine Department of
National Defense (DND) on government-to-government transactions for defence
and military-related equipment, materials, systems and/or services, signed in
2012. This MOU permits the Philippines to acquire Canadian defence-and-
security-related equipment, systems and services on a direct, sole-source basis
via the CCC.

6. • Canadian trade minister Francois-Philippe champagne recently announced the cancellation of
a $300-million trade deal to transport 16 helicopters to the Philippines in early 2019.
• The cancellation was spurred by a Canadian government review that found the helicopters
were likely to be used for anti-terrorism and internal security purposes and not for
humanitarian missions as agreed upon.
• But it was not Canada that finally scrubbed the deal. Enraged by the delay and review of the
sale, Philippines president Rodrigo Duterte ordered the cancellation
• The unexpected loss of 16 helicopters presents a temporary roadblock for the Philippines as it
fights the violent insurgency in Marawi and a deadly “war on drugs”.
• It means the Philippines must now scramble to find alternative sources to boost its capacity to
tackle mounting internal security problems.

7. • Canadian commercial corporation, a federal agency, was quietly negotiating arms deal
with the Philippines. The liberal government’s eagerness to negotiate arms sales with
countries poor human rights records through the Canadian commercial corporation raises
serious ethical questions.
• First, he defended the $300-million helicopter deal and insisted that the Montreal-built
choppers were for search-and-rescue missions and disaster relief in the Philippines.
• Later, he said the initial contract was signed under the auspices of a previous agreement
and that neither he nor any ministers were asked to sign off on it. He also said that the
plan was to move forward with the trade deal signed by the previous conservative
government in 2012 on the basis that the helicopters were to be used for non-
combative purposes.

8. • It does not take a security expert to point out that in the Philippines under Duterte’s
leadership, the helicopters were likely to be used for combat purposes. There has
been major news coverage of the Philippines' bloody internal conflicts and extra-
judicial killings. It would be naïve, if not disingenuous, for the liberal government
to defend its position by arguing that the helicopters would be used only for
search-and-rescue and disaster relief.
• As Duterte said: “and if I cannot use the gunships, the helicopters, then I might as
well surrender this government to them.”

9. IMPLICATIONS FOR CANADA
• The cancellation of the controversial helicopter deal shows clear lapses in Trudeau’s
administration.
• The government has now ordered a shake-up of the Canadian commercial
corporation, appointed a new chair to take over the crown corporation and ordered it to
become less reliant on selling arms.
• A previous trade agreement made between Canada and the Philippines remains intact, with
Canada still expected to transport a helicopter to the Philippines later this year
• But it is time for the liberal government to walk the talk. If it plans to promote Canada as a
global champion of human rights, it should stop supplying arms to countries with
questionable human rights and practices.

10. • Education
• The number of students will increase in 2016 due to the country’s
transition from a K-10 to K-12 basic education system, which
will correlate better with Canada’s educational system.
• academic partnerships with Filipino tertiary
institutions
• CHED and the Canadian Bureau for International
Education (CBIE) recently signed an agreement to
collaborate on international education
to improve the standards and quality of
education in the Philippines.

11. Infrastructure
• Public-Private Partnerships (PPP’s) opportunities are present and will speed up
economic growth by engaging the private sector in infrastructure development.
• Technical assistance for these PPP projects comes from respected
international financial institutions (IFIs), such as the Asian
Development Bank and World Bank, and from private corporation.
• The Philippine PPP Center uses Canadian consultancy services.

12. Canadian Chamber Of Commerce Of The Philippines (Cancham):
• to represent, support and promote Canada-Philippines business interests.
• membership is open to Canadian, Philippine and other third-country
corporations and individuals that have Canada-Philippines business
interests.
• membership includes large multinational corporations, small and medium
business enterprises, and persons involved in a whole range of business
activities, including international trade, investment and labour mobility.

13. • In 2011 census the Canadian government placed of Filipinos in Canada at 662,
600 representing 2% 0f Canada’s population.
• As of the 2016 Canadian census there are 837,130 people of Filipino descent
living in Canada, most living in urbanized areas representing representing 2.3%
0f Canada's population.
Filipino Diaspora