Canada-ASEAN free trade agreement expected by next year
A free trade agreement (FTA) between Canada and the Association of Southeast Asian Nations (ASEAN) is anticipated to be finalised by next year, according to officials from Canada and Thailand involved in the discussions.
Surin Thanalertkul, the Canadian embassy trade commissioner, along with Martin Sullivan, senior market development officer of the Canada Indo-Pacific Agriculture and Agri-Food Office (IPAAO), discussed the matter during the Catch of Canada event in Bangkok. The event was co-hosted by the Canadian Chamber of Commerce Thailand, the Canadian Embassy, and Canada IPAAP to promote Canadian seafood and agricultural products in Thailand.
Both officials expressed optimism that the Canada-ASEAN FTA would be concluded soon, which would enhance trade between the two markets, including Thailand. Surin noted that the FTA negotiations would facilitate smoother bilateral trade between Thailand and Canada.
Currently, trade between the countries is progressing well, but challenges remain, particularly regarding market access, tariffs, and technical issues when Canada exports goods to Thailand.
Surin highlighted the example of Canadian companies facing varying tariffs when exporting seafood products to Thailand, depending on the products’ readiness for consumption. The closer the product is to being ready-to-eat, the higher the tariffs exporters must pay.
“The issue will be resolved when Canada and ASEAN conclude the FTA. We expect the FTA negotiations to be completed by next year.”
Martin emphasised the significance of the Indo-Pacific as one of the fastest-growing economic regions globally and a crucial export market for Canada.
“Canada has many FTAs with various countries and regions, including the United States, Mexico, the EU, and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). We are hopeful that we can strengthen the relationship with ASEAN and Thailand through an ASEAN FTA.”
According to the Canadian government’s website, Canada and ASEAN announced the conclusion of exploratory discussions for a potential FTA during the ASEAN Economic Ministers–Canada Consultation in Bangkok on September 10, 2019.
On November 16, 2021, Canada and ASEAN agreed to proceed with negotiations toward an ASEAN-Canada FTA, aiming to create new market opportunities for Canadian goods and services while fostering a more transparent and predictable trade and investment environment, reported Bangkok Post.
Subsequently, ASEAN and Canada held six rounds of talks, with chief negotiators meeting in August and November 2022, April, June and September 2023, and January this year.
