ASEAN is actively deepening regional trade cooperation and negotiating, upgrading ASEAN+ FTAs with partners to mitigate risks from ising global geoeconomic challenges. As the Chair of ASEAN 2025, Malaysia calls for stronger intra-ASEAN trade amid U.S. tariff threats, while Canada is pursuing an FTA with ASEAN to diversify supply chains. ASEAN is also reviewing to upgrade its trade pacts with India, aiming to soon sign and bring into force some recently upgraded FTAs (ATIGA, ACFTA 3.0) and exploring the possibility of negotiating an FTA with the GCC. These moves reflect ASEAN’s strategic pivot to reinforce resilience, expand partnerships in new emerging sectors and maintain unity amid geopolitical uncertainties.

In early July 2025, ASEAN Leaders and external partners accelerated efforts to strengthen economic integration and diversification in response to mounting global trade pressures.

At the ASEAN Foreign Ministers’ Meeting held in Kuala Lumpur, Malaysia on July 8, Malaysia’s Prime Minister Anwar Ibrahim called for stronger trade links within ASEAN, warning that unilateral tariffs—ranging from 25% to 40% on several member states—threaten economic cohesion. He urged for investment among member states, enhanced regional integration, strengthened resilience against external shocks. The Ministers also endorsed the draft joint communique expressing concern over rising trade tensions and supported a rules-based trading system, avoiding retaliatory tariffs.

ASEAN has also completed the upgrade negotiation of the ASEAN Trade in Goods Agreement (ATIGA) and is aiming to have it signed within this year.

Together with intra ASEAN effort, ASEAN also puts focus on its trade ties with external partners.

In the framework of ASEAN - Canada trade relation, on July 10, Canada’s Foreign Minister Anita Anand emphasized that Canada is actively negotiating a Free Trade Agreement with ASEAN with a view to diversifying Canada's trade beyond some certain reliance, enhancing partnerships across sectors like energy, food security, digital economy, and AI. The Minister also shared that the FTA discussions are “complex but progressing quickly”, reflecting strategic importance of the Indo-Pacific region for Canada’s future growth.

Another framework being promoted is the review and upgrade of the ASEAN – India Trade in Goods Agreement (AITIGA). Also on July 8, ASEAN Foreign Ministers reaffirmed the commitment to reviewing and upgrading the AITIGA with the goal to create a more equitable and modern FTA, redressing long-standing trade imbalances.

ASEAN and China have also concluded the upgrade negotiation of the ACFTA 3.0 and are aiming to have it signed in October 2025, reinforcing intra‑regional connectivity and streamlining supply chains.