57th ASEAN Economic Ministers' Meeting Set To Advance Groundwork For ASEAN-Canada FTA - Economist
By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 24 (Bernama) -- The 57th ASEAN Economic Ministers’ Meeting (AEM) and Related Meetings here are set to advance the groundwork for the ASEAN-Canada Free Trade Agreement (FTA), focusing on cementing rules of origin and digital trade protocols.
Juwai IQI global chief economist Shan Saeed told Bernama that the ASEAN-Canada FTA bilateral accords are already in play and are expected to serve as testing grounds for broader regional adoption between the two nations.
“Bilateral initiatives are also emerging as pilot frameworks that could shape regional cooperation, with Malaysia leading collaboration on halal certification, while Singapore and Thailand are partnering with Canada on clean-tech agreements.
“These initiatives not only deepen bilateral ties but also serve as scalable models for eventual integration into ASEAN-Canada FTA chapters,” he told Bernama.
ASEAN-Canada trade reached US$47 billion (US$1 = RM4.20) in 2023, representing a 24 per cent increase over three years and an annual growth rate of around seven per cent.
Canada’s investment footprint in ASEAN already exceeds US$15 billion, largely concentrated in mining, insurance, and food processing.
Shan said Malaysia is set to anchor deeper ASEAN-Canada economic integration in the years ahead, with Malaysia’s economy projected to expand between 4.5 per cent and 5.5 per cent.
“Within this landscape, Malaysia is positioned as a pivotal player. It continues to attract investor attention by serving as a regional halal logistics hub, a global leader in Islamic finance, and a strategic electronics and electrical (E&E) export platform into the North American market,” he said.
Although Canada represents just 1.3 per cent of ASEAN’s total trade, its strategic value is far greater than the numbers suggest, said Shan.
He noted that in an era of intensifying United States (US)-China trade rivalry, Canada offers ASEAN a neutral and rules-based corridor, reinforcing a more balanced trade architecture.
“Canada’s membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) highlights its commitment to high-quality, rules-anchored trade, an institutional edge that complements ASEAN’s push for deeper integration.
“Malaysia’s role as a strategic geographical position and gateway to China is also vital. These initiatives sit at the intersection of geopolitics and commerce, further elevating Malaysia’s role as a bridge in ASEAN-Canada relations,” he added.
On July 10, the High Commission of Canada in Malaysia reiterated its optimism on the ongoing negotiations for an ASEAN-Canada FTA that would unlock substantial economic opportunities for both regions while advancing inclusive and rules-based growth.
It noted that the FTA is a key pillar in Canada’s broader engagement with Southeast Asia, as the country looks to deepen trade ties, enhance supply chain resilience, and support sustainable development across the Indo-Pacific.
Malaysia, as the current ASEAN chair, is hosting the 57th AEM Meeting from Sept 22 to 26, 2025, bringing together economic ministers from all member states.
-- BERNAMA