Question Period Note: Canada-ASEAN Free Trade Agreement (ACAFTA)

Canada is seeking to conclude Free Trade Agreement (FTA) negotiations with the Association of Southeast Asian Nations (ASEAN) as soon as possible.

• Expanding Canada's trade with large, fast-growing markets like ASEAN is a priority for Canada.
• An FTA with ASEAN would provide Canada with new preferential market access to key economies in Southeast Asia, including Thailand and the Philippines, bolstering existing trade and investment, and promoting further integration into global supply chains for Canadian businesses.
• Given the importance of trade diversification in present global economic context, Canada and ASEAN are working to substantively conclude negotiations as soon as possible.

Canada and the ten ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) are seeking to conclude FTA negotiations (launched in 2021) as soon as possible. A comprehensive FTA would help create new market opportunities for Canadian goods and services, while supporting a more transparent and predictable environment for trade and investment. An FTA with ASEAN enjoys broad support in Canada (across provinces and territories as well as stakeholders from various industries) and offers significant opportunities for Canadian businesses in the ASEAN market across a broad range of sectors, including agriculture and agri-food, fish and seafood, natural resources, manufacturing, and financial services. ASEAN represents an economy of 600 million people across ten countries, positioning it as the fifth largest economic bloc worldwide, and is Canada's fourth largest merchandise trading partner.
With growing geopolitical uncertainty and emerging patterns of protectionism and economic coercion by major economies, establishing new FTA partnerships, including with ASEAN, supports Canada's interests. An FTA with ASEAN will complement Canada's existing trade engagement in the region, notably the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada-Korea FTA, and the Canada-Indonesia CEPA, by opening new markets in the region, including Thailand and the Philippines.

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