In fact, Canada is currently negotiating a trade agreement with the Association of Southeast Asian Nations (ASEAN). Their aim is to have an agreement wrapped up by early 2026. And indeed, Prime Minister Mark Carney is personally spearheading an effort to make Canada the partner of choice for Southeast Asia. In particular, he makes is a big deal out of the nation’s commitment to rules-based trade.
The Canadian government is currently in the midst of finalizing the next phase of its five-year action plan with ASEAN. This plan is only temporary, expiring at the end of 2025. This new action plan seeks to deepen economic relations and enhance collaboration between Canada and individual ASEAN member states.
During his attendance at the ASEAN leaders’ summit, hosted by Malaysian Prime Minister Anwar Ibrahim, Carney highlighted Canada’s expertise that can significantly benefit Southeast Asia. He emphasized that Canada has great expertise in ag research, especially in creating fortified grains and pulses. To ensure our region’s food security, we can leverage that expertise to address the growing food insecurity regionally and nationally.
Canada is a country with deep experience with nuclear power. This makes it a consistent and reliable partner for countries like Vietnam and Malaysia, which are dealing with skyrocketing energy demand. The Canadian government is equally explicit about its mission to double its country’s exports to non-US markets over the next 10 years. They’re shooting for an ambitious $300 billion more in trade. This strategic initiative encompasses a renewed, concerted focus on diversifying trade with their collective super-charged focus on Southeast Asia.
Wayne Farmer, president of the Canada-ASEAN Business Council, noted the importance of engaging more with businesses in the ASEAN region. He stated, “I think ASEAN is very eager to do more with Canada, seeing us as a reliable, stable partner that they can plan to work with.”
From the Canada side, they are deeply interested in bolstering trade ties. In order to do this, they plan on streamlining the approval process for large-scale projects deemed to serve the national interest. Among these are key projects such as the LNG 2 initiative that fit well within Canada’s own goals to deepen energy ties with ASEAN countries.
Prime Minister Carney is scheduled to meet with representatives from an oil and gas company and Malaysia’s central bank before visiting an aerospace facility in Kuala Lumpur. These meetings highlight Canada’s commitment to create collaborative, business-driven ecosystems that will continue to fuel the region’s robust economic growth and innovation.
Canada wants to be a world leader in sustainable energy and agriculture. Beyond this, it aims to lead in other areas that matter to the ASEAN countries. Moves like these show that the Canadian government is serious about diversifying its economic partnerships. This strategy increases resilience by reducing their reliance on conventional markets.
“The world has changed and everybody’s trying to figure out how to diversify and how to reduce vulnerability and how to ensure their own economic resilience,” said Vina Nadjibulla, highlighting the shifting dynamics of global trade.
Canada especially recognizes the 10-nation ASEAN bloc as becoming increasingly important to the Indo-Pacific region. They are storied commercial and development partners. Now the Canadian government is looking intently at Southeast Asia. This dovetails nicely with Carney’s idea of building sustainable, two-way beneficial relationships with these countries.
Yet, even as this optimism buzzes around these initiatives, there is a hard road ahead. Farmer acknowledged that “we’ve really complicated the picture in Canada to invest into, especially at large scales like infrastructure programs.” Now more than ever, efforts to cut red tape from regulatory processes will be critical to attracting investment and encouraging trade.
This is why Prime Minister Carney is a constant presence influencing the discussion in Southeast Asia. Canada is equally committed to ensuring that it becomes the best and most reliable ally in this rapidly-changing economic environment.
