Makati city: The Canadian and European Union (EU) governments have expressed confidence that the ongoing corruption scandal involving flood control projects in the Philippines will not impede discussions on potential free trade agreements (FTA). This assurance came from their ambassadors in Manila during the Stratbase ADR Institute 2025 Pilipinas Conference.

According to Philippines News Agency, EU Ambassador Massimo Santoro stated that the controversy was never a concern for the EU, as it sees the Philippine government taking concrete steps to address the issue. Ambassador Santoro highlighted President Ferdinand R. Marcos Jr.’s initiative in identifying and launching actions against the corruption scandal during his State of the Nation Address (SONA). He emphasized that the EU perceives these steps as positive, reinforcing their confidence that FTA talks remain unaffected.

The Philippines and the EU are accelerating negotiations for an FTA, with plans to resume discussions in 2024 and the next round of negotiations slated for the first quarter of 2026. Canadian Ambassador David Hartman shared a similar sentiment, noting that the corruption issue has not impacted Canada’s preliminary discussions with Manila. He asserted that talks remain on track as the Philippine government addresses public concerns. Both countries aim to finalize FTA negotiations by 2026.

Since President Marcos Jr.’s last SONA, the Philippine government has initiated a nationwide audit and investigation into the corruption allegations surrounding flood control projects. This effort led to the establishment of the Independent Commission for Infrastructure (ICI), underscoring the administration’s commitment to transparency and accountability.

Japanese Ambassador Endo Kazuya, also present at the conference, remarked on the continued commitment of Japanese companies to work with the Philippines, recognizing the country’s growth potential. He reiterated the importance of transparency and accountability for Japanese and other international businesses. Ambassador Kazuya noted that there has been no significant change in perception among Japanese businesses despite the corruption issue.