Canada’s proposed free-trade agreement with Asean could help the region expand its sectors ranging from mining to manufacturing and boost Ottawa’s aim to lessen its dependence on the US as both sides seek to accelerate economic diversification, according to analysts.
Canadian International Trade Minister Maninder Sidhu confirmed with Bloomberg on Tuesday during a visit to Manila that Canada was keen to conclude separate pacts with the Association of Southeast Asian Nations and the Philippines this year, after Ottawa and the bloc announced initial talks in 2021.
The agreement would open new markets and opportunities for Canadian workers and businesses in the region, Sidhu said on the sidelines of a trade meeting with his Philippine counterpart, Cristina Roque, and Finance Secretary Frederick Go.
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Canada said it would invest C$2 million (US$1.5 million) in the Luzon Economic Corridor – a project backed by the US and Japan – primarily in data centres, logistics and energy.
Sidhu said that the start of free trade talks in late 2021 occurred when “the world was in a different place”. The trade minister added that there was political will to finalise the free trade pact with Asean this year.
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Last year, Canadian Prime Minister Mark Carney announced Ottawa’s aim to double the country’s exports to non-US markets to C$600 billion (US$437 billion) annually in the next decade by 2035.