A new trade agreement between Canada and the Association of Southeast Asian Nations (ASEAN) is projected to generate substantial economic benefits for both sides. According to Canadian Parliamentary Secretary Yasir Naqvi, economic modeling indicates the ASEAN-Canada Free Trade Agreement (ACAFTA) could boost Canada’s GDP by US$2.54 billion and add US$6 billion to the ASEAN economy. These anticipated gains underscore the agreement’s potential to foster significant mutual prosperity.
The agreement aims to create a more favorable environment for commerce by reducing tariffs and minimizing non-tariff barriers. Naqvi emphasized that improved transparency and predictability for businesses will strengthen supply chains and support regional economic expansion. He made these comments during the AEM-Canada Consultation, which was held alongside the 57th ASEAN Economic Ministers’ Meeting in Kuala Lumpur.
Canada has positioned itself as a partner ready to support ASEAN’s key priorities, including sustainable development and food security. Naqvi highlighted Canada’s commitment to collaboration in areas such as the digital economy, artificial intelligence, and clean technology. The new Canadian government under Prime Minister Mark Carney is reportedly dedicated to deepening this strategic partnership, recognizing ASEAN’s central role in the Indo-Pacific region.
Recent high-level engagements demonstrate Canada’s active interest in Southeast Asia. These include foreign and agricultural ministerial visits focused on food security and trade. Furthermore, Canadian trade missions have connected hundreds of business representatives with opportunities across multiple ASEAN nations. Naqvi also welcomed Timor-Leste’s participation in the meeting, affirming Canada’s support for its accession to ASEAN and signaling an intent to elevate cooperation across the board.