The Canadian and European Union (EU) governments do not expect the massive flood control corruption scandal to derail ongoing discussions for potential free trade agreements (FTA) with the Philippines, their ambassadors in Manila said Thursday.
On the sidelines of the Stratbase ADR Institute 2025 Pilipinas Conference in Makati City, EU Ambassador Massimo Santoro and Canadian Ambassador David Hartman both acknowledged the Philippine government’s ongoing efforts to address the issue.
Santoro said the controversy “never became a concern” for the EU as it sees the government is taking concrete action to address the issue.
“It was President (Ferdinand R.) Marcos Jr. himself who identified the issue during his State of the Nation Address (SONA). He identified it and he launched concrete action against it,” he said.
“So we cannot but welcome, of course, any action against corruption. We never had a concern that this could impact (the FTA talks) because action is taken. We see that there is action by the government.”
The Philippines and EU are speeding up talks for an FTA after launching its resumption in 2024, with the next round of negotiations set to take place in the first quarter of 2026.
Hartman, in a separate interview, said the issue has likewise not surfaced in Canada’s preliminary discussions with Manila, emphasizing that talks remain unaffected as the Philippine government works to address public concerns.
Both countries aim to conclude FTA negotiations by 2026.
“Well, these are ongoing discussions. The government obviously is quite focused on addressing these issues to address the needs and the requirements of the Philippine people,” he said.
“So at this stage, it has not been a factor in our discussions.”
The Philippines and Canada are preparing to launch negotiations for a bilateral FTA and conclude talks by 2026.
Since the President’s last SONA, Malacañang initiated a nationwide audit and investigation into corruption allegations hounding flood control projects, leading to the creation of the Independent Commission for Infrastructure (ICI).
In the same event, Japanese Ambassador Endo Kazuya said many Japanese companies likewise remain “very much committed to working with the Philippines, bearing in mind that the Philippines as a country will continue to grow with its huge potential.”
“Of course, for many of the Japanese companies, as well as any country’s companies, transparency and accountability will remain a very important matter,” he said.
From his end, the envoy said he “hasn’t heard” of any significant change in perception among Japanese businesses when the corruption issue erupted.
PIXABAY PHOTO