Trade negotiators from Canada and the Association of Southeast Asian Nations (Asean) reached a substantial conclusion on a free trade agreement on Saturday.
The breakthrough concludes discussions that began in 2021, moving the 11-member bloc closer to finalizing its first such trade pact with a North American country.
According to Canada, the agreement is expected to add nearly $2 billion to the Canadian economy and create approximately 14,000 jobs. While Ottawa anticipates the deal will enhance supply chains and trade predictability, Asean has not yet disclosed its own projected economic gains from the arrangement.
The announcement occurred in the Philippines during a visit by Canadian Prime Minister Mark Carney. While a substantial conclusion has been reached, officials said that several steps remain before the negotiations formally close. Both sides are currently working toward a potential signing in 2027.
To support the process, Canada has pledged $5 million to assist Asean economies in the ratification and implementation of the agreement. This funding is in addition to a previous $25-million commitment intended to help Southeast Asian nations prepare for the trade pact.
In a statement, Mark Carney said,
“Two agreements in one year: that is the speed and ambition this moment demands. That is how we build more choice, more customers, and greater sovereignty for Canadians.”
In addition to the regional deal, Canada and the Philippines announced the conclusion of a separate bilateral trade pact, which is also targeted for signing in 2027. According to the Presidential Communications Office, this agreement will cover services, investment, digital trade, and goods. The deal is expected to help the Philippines triple its annual trade with Canada to more than $10 billion by 2035.
In 2024, Asean served as Ottawa’s fifth-largest trading partner, with bilateral trade reaching $52.5 billion.
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