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Canada and the Philippines signed a landmark defense agreement on November 2, 2025, aimed at boosting joint military drills, enhancing security cooperation, and deterring China’s growing assertiveness in the disputed South China Sea.

The Status of Visiting Forces Agreement (SOVFA) was signed in Manila by Philippine Defense Secretary Gilberto Teodoro Jr. and his Canadian counterpart, David McGuinty, following a closed-door meeting. The accord provides a legal framework for the deployment of visiting troops, joint exercises, and expanded defense collaboration between the two countries.

McGuinty said the agreement would “deepen training, information-sharing, and cooperation in disaster response and regional security.” He emphasized that “peace is built on rules, not recklessness,” describing the pact as “a great day for both our countries.”

Teodoro, echoing concerns shared by other Indo-Pacific nations, said the move was essential for maintaining a rules-based international order. “Who is hegemonic? Who wants to expand their territory in the world? China,” he stated, underscoring growing tensions between Manila and Beijing over contested waters.

China Responds Cautiously to Regional Developments

China has not yet issued an official response to the new agreement. In recent months, however, Beijing has expressed concern over what it views as “provocative” actions by the Philippines, particularly its joint patrols and military exercises with the United States and other partners in the region.

Beijing maintains that it has historical claims over most of the South China Sea, though a 2016 international arbitration ruling under the 1982 UN Convention on the Law of the Sea rejected those claims. China has consistently stated that it does not recognize the ruling and continues to emphasize direct dialogue and negotiation as the preferred means of resolving disputes.

Tensions have occasionally flared at sea, with incidents involving coast guard vessels from both sides. These encounters have raised concerns about safety and the potential for miscalculation in one of the world’s busiest maritime trade routes, where Vietnam, Malaysia, Brunei, and Taiwan also maintain overlapping claims.

Growing Network of Security Alliances

The defense pact between Philippines and Canada marks the third such agreement signed under President Ferdinand Marcos Jr., following similar accords with Japan and New Zealand. The Philippines has also signed comparable pacts with the United States and Australia in previous years.

Talks are ongoing with France and Singapore for future agreements, while Manila is exploring negotiations with Britain, Germany, and India. The agreements reflect a broader strategy by the Marcos administration to modernize the Philippines’ underfunded military and build alliances capable of countering a militarily superior China.

The latest pact is also Canada’s first visiting forces agreement with an Indo-Pacific nation. Canadian officials described it as part of a broader push to expand Canada’s defense and diplomatic footprint in the region, complementing its 2022 Indo-Pacific Strategy.

Backlash Over Scarborough Shoal

The signing came shortly after the annual ASEAN Defense Ministers’ Meeting in Malaysia, where Teodoro condemned China’s plan to establish a so-called “nature reserve” at the Scarborough Shoal, a rich fishing ground claimed by both Manila and Beijing.

“This, to us, is a veiled attempt to wield military might and the threat of use of force, undermining the rights of smaller countries and their citizens who rely on the bounty of these waters,” Teodoro said.

Canada has also criticized China’s move, accusing Beijing of using environmental protection as a “pretext to exert control” over disputed territories. Ottawa previously denounced China’s “dangerous use of water cannons” that injured a Filipino coast guard officer in September.

Expanding Cooperation and Technology Sharing

The latest defense agreement builds on previous cooperation between the two nations. In 2023, Manila and Ottawa signed a deal granting the Philippines access to data from Canada’s Dark Vessel Detection System, a satellite-based technology that tracks ships even when their transponders are turned off.

Philippine authorities have since used this system to monitor Chinese coast guard and fishing vessels operating within their exclusive economic zone. Officials say the technology has strengthened Manila’s maritime domain awareness and provided valuable evidence of Chinese incursions.

Regional Implications

The agreement between Canada and the Philippines underscores a broader trend of Western nations deepening their military presence in the Indo-Pacific. Canada, along with the United States, Australia, and Japan, has sought to reinforce a collective front to promote freedom of navigation and uphold international law in the region.

For the Philippines, the deal represents another step in strengthening its deterrence capabilities while reaffirming its commitment to peaceful cooperation. “We aim to de-escalate tensions in disputed waters, but we must also ensure our sovereignty is defended,” Marcos said earlier this week.

While both nations stressed that the pact is not aimed at any specific country, it sends a clear message amid China’s expanding influence and militarization of the South China Sea.

As the Philippines continues to form a web of defense partnerships, observers say Manila’s strategy reflects a pragmatic approach to balancing diplomacy with deterrence, signaling that smaller nations are no longer willing to face regional coercion alone.