Philippines Corruption Scandal Won’t Derail EU and Canada FTA Talks: What Traders and Investors Should Know
The ongoing flood control corruption scandal in the Philippines has raised public eyebrows, but according to EU and Canadian ambassadors, it will not derail ongoing free trade agreement (FTA) negotiations with the country.
Speaking at 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 proactive measures to address the issue.
Santoro noted that the controversy “never became a concern” for the EU because the government is taking concrete action, including President Ferdinand R. Marcos Jr. publicly identifying the problem during his State of the Nation Address (SONA) and launching a response plan.
Hartman, for his part, confirmed that the scandal has not surfaced as an issue in preliminary discussions with Canada. Both ambassadors emphasized that FTA talks remain on track, aiming to conclude agreements by 2026.
Why This Matters to Forex Traders and Investors
For those engaged in Forex trading, investment, or economic analysis, government scandals can sometimes cause market jitters, affecting the Philippine Peso (PHP) or investment sentiment. However, this development has a stabilizing signal for the market:
Proactive Governance: Public identification of corruption and initiation of investigations shows government accountability, reassuring investors.
Trade Continuity: The continuation of FTA talks with the EU and Canada signals long-term economic growth and foreign investment opportunities.
Potential Peso Stability: Strong government action and international cooperation can mitigate sudden currency swings, particularly in USD/PHP and EUR/PHP trading pairs.
At GME Academy (Global Markets Eruditio), we emphasize how political and governance news can influence Forex markets, helping traders, including beginners, anticipate risks and opportunities linked to policy and trade developments.
Philippine Government Action
Since the President’s last SONA, Malacañang has:
Launched a nationwide audit of flood control projects.
Initiated investigations into corruption allegations.
Created the Independent Commission for Infrastructure (ICI) to oversee accountability and transparency.
This demonstrates measured and structured action, which both the EU and Canada consider reassuring for trade negotiations.
Japanese Ambassador Endo Kazuya also weighed in, noting that Japanese companies remain committed to the Philippines, with transparency and accountability being critical but not deterrents to business partnerships.
FTA Talks Update
Philippines-EU FTA:
Talks resumed in 2024.
Next negotiation round set for Q1 2026.
Aim: conclude agreement by 2026.
Philippines-Canada FTA:
Bilateral negotiations preparing to launch soon.
Target completion: 2026.
These agreements are expected to enhance trade, investment, and economic collaboration, which is especially important for sectors like manufacturing, agriculture, and services.
Key Takeaways for Filipinos and Traders
Corruption is being addressed: Proactive measures improve transparency and credibility.
FTA negotiations are on track: EU, Canada, and Japan continue to prioritize trade opportunities over isolated governance issues.
Markets may benefit: Continued foreign investment and trade agreements can strengthen the PHP and create economic stability.
Stay informed: Statements from ambassadors and government actions are critical indicators for market-sensitive traders, especially in USD/PHP, EUR/PHP, and CAD/PHP pairs.
For ordinary citizens, these developments mean potentially more jobs, investment, and business growth. For Forex traders, the news can guide risk management and strategic positioning.
Turn Governance News into Trading Insights
At GME Academy, we teach Forex Trading for Beginners how to connect real-world events—like government actions, trade negotiations, and corruption investigations—to currency market opportunities.
Want to learn how political and economic news affects Forex markets and spot trading setups before the market reacts?
Join our FREE Forex Workshop at GME Academy today and start building your skills to trade smarter and more confidently.
