ASEAN-Canada FTA Talks Set To Conclude Next Year, Poised To Boost Trade And Investment

KUALA LUMPUR, Sept 26 (Bernama) -- Ongoing negotiations for the ASEAN-Canada Free Trade Agreement (FTA), set to be finalised by next year, are expected to strengthen business and investment relations, supporting both sides’ goals of economic growth and trade diversification.

Parliamentary Secretary to the Minister of International Trade and to the Secretary of State (International Development), Yasir Naqvi said economic modelling predicted that an agreement with ASEAN could increase Canada's gross domestic product (GDP) by US$2.54 billion and ASEAN's GDP by US$6 billion.

“The potential benefits are clear... Canada is not only home to a wealth of natural resources and expertise in areas such as clean technology that could benefit the ASEAN region, but also to some of the largest institutional investors in the world.

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“The ASEAN-Canada FTA will benefit Canada and all ASEAN member states by lowering barriers to trade, including tariffs and non-tariff barriers, providing much-needed predictability and transparency for our traders and investors, and strengthening supply chains,” he said in his opening remarks at the 14th ASEAN Economic Ministers (AEM)-Canada Consultation here, today.

Naqvi also noted that Canada’s Prime Minister, Mark Carney is set to attend next month’s ASEAN Summit as a guest of the Chair, aiming to elevate the ASEAN-Canada partnership, through concrete, comprehensive, ambitious and innovative initiatives.

He added that, although this would be Carney's first trip to Asia since taking the office, it would mark the fourth consecutive time a Canadian Prime Minister has participated in the ASEAN Leaders' Summit,  demonstrating the country’s steadfast commitment to the region as outlined in Canada's Indo-Pacific Strategy.

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Meanwhile, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said ASEAN-Canada FTA, once concluded, would not only deepen Canada's integration into ASEAN's dynamic region, but also unlock new drivers of growth in the digital economy, green transition and resilient supply chains.

When met by reporters after the consultation, Tengku Zafrul said the meeting discussed the latest developments in the ASEAN-Canada FTA negotiations and agreed to finalise the deal by the end of 2026.

Asked about the delays in concluding the FTA, he explained that it was due to the differing positions of each ASEAN country.

“With 10 countries having different priorities, it is not that easy. At the same time, we want an FTA that is relevant for all. Therefore, it requires more time, especially for countries that are not part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),” he added.

-- BERNAMA