Connected geographically across the Pacific Ocean – one of the world's busiest maritime trade routes, ASEAN and Canada have natural advantages to develop economic and trade cooperation.

Canada became an ASEAN Dialogue Partner in 1977 and is currently one of ASEAN's 11 Dialogue Partners. In 2009, Canada appointed an Ambassador to ASEAN and the two sides adopted a Joint Declaration on an Enhanced ASEAN-Canada Partnership. In 2016, Canada established a diplomatic mission to ASEAN and appointed its first dedicated Ambassador to ASEAN. Canada has diplomatic representation in all 10 ASEAN member states.

In November 2022, Canada announced its Indo-Pacific Strategy (IPS), a strategy that guides Canada's diplomatic, trade, defense, security and development approach to the Indo-Pacific region over the next decade. Under Canada's IPS, the Indo-Pacific region spans over 40 countries and economies, including all 10 ASEAN member states. Canada's vision articulated through its IPS for the Indo-Pacific is a free, open and inclusive region, with ASEAN at its core. Canada's IPS supports ASEAN centrality and contributes to realizing ASEAN's Outlook on the Indo-Pacific.

On September 6, 2023, Canadian Prime Minister Trudeau attended the ASEAN-Canada Summit held in Jakarta, Indonesia. At this Summit, ASEAN and Canada elevated their relations to a Strategic Partnership, opening a new chapter in ASEAN-Canada relations.

Photo: The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, Canada attending the thirteenth AEM-Canada Consultation held on 20 September 2024 in Vientiane, Lao PDR (Source: ASEAN Secretariat)

On economic and trade cooperation, in 2011 ASEAN and Canada signed a Joint Declaration on Trade and Investment (JDTI) laying the foundation for regular exchanges of information on opportunities and potential for expanded trade and investment between Canada and ASEAN. ASEAN and Canada also regularly hold Trade Policy Dialogues to discuss and enhance mutual understanding on economic issues of common interest. In 2024, Canada announced its new Technical Assistance Program for the Indo-Pacific region on trade and labor issues.

Currently, Canada is a member of the CPTPP together with 4 ASEAN countries including Viet Nam, Singapore, Brunei and Malaysia. Canada has also just announced the substantial conclusion of a CEPA with Indonesia. ASEAN countries and Canada officially launch negotiations on an ASEAN-Canada Free Trade Agreement (ACAFTA) at the 10th ASEAN-Canada Economic Ministers' Consultation in November 2021. The two sides aim to conclude the ACAFTA negotiations by 2025. Once completed, ACAFTA is expected to further deepen and elevate ASEAN-Canada economic and trade cooperation to new heights.

Within ASEAN, Viet Nam is Canada's largest trading partner, followed by Indonesia, Singapore and Malaysia. Trade and investment ties between ASEAN and Canada show positive signs of post-COVID-19 pandemic recovery. According to ASEANStats, two-way trade was US$23.1 billion in 2022 and US$20.3 billion in 2023 (with ASEAN exports at US$12.4 billion and imports into ASEAN at US$7.9 billion in 2023). Foreign direct investment (FDI) inflows from Canada into ASEAN reached US$3.62 billion in 2022, a 13.4% increase from the previous year. Canada's areas of strength include aerospace, defense, agri-food and processed foods, infrastructure, energy and clean technology, information and communications technology, and education. Canada's advanced technology and human resource development strengths are well-suited to support ASEAN countries./.