Canada is moving quickly to finalize a Canada–ASEAN Free Trade Agreement (FTA) by the end of 2025 as part of a major push to diversify its trade relationships and reduce reliance on the United States. The move comes amid rising tariffs from Washington on Canadian exports such as steel, aluminum, and automobiles.
Foreign Minister Anita Anand confirmed that negotiations with ASEAN member countries, including Thailand, are well underway, with the goal of completing the agreement as soon as possible. The talks, recently held in Kuala Lumpur, cover more than tariff reductions. They aim to expand cooperation in critical sectors such as energy security, food supply, digital trade, and artificial intelligence.
The urgency behind this trade pivot is clear. While the United States remains Canada’s largest trading partner, its share of Canadian exports has dropped to about 68%, the lowest on record, down from 75% last year. This shift underscores Canada’s strategy to strengthen economic ties with the fast-growing Indo-Pacific region.
Anita Anand confirmed that negotiations with ASEAN member countries are well underway
Thailand plays a central role in this effort. In May 2025, Canada completed its Team Canada Trade Mission to Thailand and Cambodia, part of a broader Indo-Pacific strategy to open new markets for Canadian businesses. The mission brought more than 150 delegates from over 90 Canadian organizations—80% of them small and medium-sized enterprises—to Bangkok and Phnom Penh for high-level meetings and business-to-business sessions. The focus was on sectors such as technology, agribusiness, clean energy, and life sciences, where opportunities for collaboration are significant.
Canada and Thailand share a long-standing diplomatic relationship dating back to 1961. Today, both countries are looking to strengthen economic ties further, building on past cooperation within the ASEAN Regional Forum and other trade initiatives. Trade officials highlighted Thailand’s strong market potential and its role as a gateway to the broader Southeast Asian economy.
Negotiators expect to finalize the FTA by late 2025. Canadian industry groups are actively providing input to ensure better market access and fewer trade barriers, while Ottawa continues similar outreach to other Indo-Pacific nations, including Indonesia and the Philippines.
For Thailand, the agreement could attract new Canadian investment in technology, agriculture, and green energy. For Canada, it represents a strategic shift toward Asia, creating a pathway for businesses to tap into one of the world’s most dynamic regions.
This deal, once signed, is expected to deepen economic integration between Canada and ASEAN, offering long-term benefits for businesses and consumers across the region.
