To implement the Indo-Pacific Strategy (IPS), in which ASEAN is an important priority, Canada has made various efforts to promote economic, trade and energy cooperation with this region.

Introducing new energy cooperation initiative

The Canadian Trade Gateway for Nuclear Development in the Indo-Pacific region was announced by Canadian Prime Minister Justin Trudeau at the APEC Summit Week in November 2024; then Canada's Minister for Export Promotion, International Trade and Economic Development, Mary Ng joined representatives from Canada’s nuclear energy community to share Canada’s vision for strengthening nuclear partnerships in the Indo-Pacific through the Canadian Trade Gateway.

Photo: Minister of Export Promotion, International Trade and Economic Development of Canada, Mary Ng and Ambassadors of some ASEAN countries to Canada at the announcement event of the Canadian Trade Gateway for Nuclear Development in the Indo – Pacific region (Source: Mary Ng)

As a world leader in the nuclear sector, Canada could share its expertise, know-how and best practices with countries in the Indo-Pacific region in general and ASEAN in particular, especially in the context of some ASEAN countries expressing interest in nuclear energy development.

Developing mechanisms to facilitate trade activities

Photo: Canada's Minister for Export Promotion, International Trade and Economic Development, Mary Ng attends the 13th ASEAN-Canada Economic Ministers' Consultation in Vientiane, Laos in September 2024 (Source: ASEAN Secretariat)

In September 2023, Canadian Prime Minister Justin Trudeau appointed Canada's first Trade Representative in the Indo-Pacific region and his office is located in Jakarta, Indonesia - an ASEAN country.

ASEAN and Canada agreed to officially launch negotiations on the ASEAN-Canada Free Trade Agreement (ACAFTA) at the 10th ASEAN-Canada Economic Ministers' Consultation in November 2021. The two sides aim to conclude negotiations on the ACAFTA in 2025. The ACAFTA, after being concluded, is expected to continue to deepen and bring economic and trade cooperation between ASEAN and Canada to a new level.

In addition, Canada and Indonesia kicked off negotiations on the Canada-Indonesia Comprehensive Economic Partnership (CEPA) in 2021, and after 10 rounds of negotiations, on December 2, 2024, Canada's Minister for Export Promotion, International Trade and Economic Development, Mary Ng, and Indonesia's Minister of Trade, Budi Santoso, signed a joint statement announcing the conclusion of negotiations on the CEPA and committed to signing CEPA by 2025. In December 2024, Canada and the Philippines announced the launch of exploratory discussions to assess the possibility of negotiating a free trade agreement between the two countries. The first round of exploratory discussions between Canada and the Philippines will take place in the first half of 2025.

Promoting business exchanges

Photo: Canadian business delegation to Viet Nam in March 2024 (Source: CanCham Vietnam)

Canada has also made various efforts to create opportunities for Canadian businesses to meet and work with businesses from ASEAN countries, explore investment and business opportunities in ASEAN region. From March 26 to 29, 2024, on the occasion of the 2nd Meeting of the Viet Nam-Canada Joint Economic Committee, Minister of Export Promotion, International Trade and Economic Development of Canada, Mary Ng led a delegation of nearly 250 members from around 200 Canadian businesses in the fields of agriculture and food, clean technology and energy, health care and information technology to Viet Nam. From December 1 to 6, 2024, Minister Mary Ng led a 300-member delegation from more than 190 Canadian businesses to Indonesia and the Philippines, including big names such as Blackberry Cybersecurity, Sun Life, Parkland Corporation, etc.

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. 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./.