KUALA LUMPUR: Canada aims to conclude its first free trade agreement (FTA) with Asean by next year as part of its broader Indo-Pacific strategy to boost non-United States exports and strengthen economic ties across the region.
Prime Minister Mark Carney said Ottawa and Asean leaders had agreed to accelerate negotiations for the Canada-Asean Free Trade Agreement, with completion targeted for 2026.
“This deal will open new doors for Canadian businesses and workers, giving them access to some of the fastest-growing markets in the world,” he said while addressing journalists on the sidelines of the Asean Summit today.
Carney said the trade pact could add more than US$1.5 billion (RM7.2 billion) to Canada’s economy while creating opportunities in clean technology, agriculture, aerospace, advanced manufacturing, and critical minerals.
“As of now, Asean already represented Canada’s second-largest trading partner with more than US$260 billion in two-way trade, but that figure accounted for only 10 per cent of Canada’s total exports.
“There’s tremendous potential to grow,” he said, adding that Canada aimed to double its non-US exports within the next decade, generating an additional US$300 billion in trade.
Carney said he held bilateral meetings with the leaders of Vietnam, Laos, and the Philippines to move the FTA talks forward, adding that Canada and the Philippines would also launch separate bilateral trade discussions.
“Our message is clear, Canada is here to be a long-term partner in trade, energy, and innovation.”
The Asean–Canada FTA negotiations, launched in 2021, cover trade in goods and services, investment, and digital cooperation, and form part of Canada’s expanding presence in the Indo-Pacific region.
Meanwhile, in a separate matter, Carney said Canada and Malaysia had agreed to strengthen cooperation in energy, including liquefied natural gas (LNG), oil, nuclear power, and renewables, following the signing of a Letter of Intent in Kuala Lumpur.
He said the move reflected both nations’ shared commitment to energy security and sustainable growth.
“Canada is an energy superpower, and together with Petronas, we are exploring new opportunities to expand investment and clean energy innovation,” he said.
Carney said Petronas, a key investor in the LNG Canada project in British Columbia, would play a major role in the second phase of the development, which is expected to double production capacity and create tens of thousands of new jobs.
Malaysia and Canada have long enjoyed strong energy ties, with Petronas holding a significant stake in the LNG Canada joint venture alongside Shell, Mitsubishi, and PetroChina.
© New Straits Times Press (M) Bhd
