Canada pushes to finalise Asean trade deal to cut US reliance

Ottawa is keen to sign an FTA with Asean this year, as analysts predict two-way growth in sectors ranging from mining to manufacturing

3-MIN READ3-MIN

Listen

Asean leaders pose for a group photo during the opening ceremony of the bloc’s summit in Cebu, Philippines, on May 8. Photo: Reuters

Published: 8:00am, 15 May 2026Updated: 4:28pm, 15 May 2026

Canada’s proposed free-trade agreement with Asean could help the region expand sectors ranging from mining to manufacturing while advancing Ottawa’s push to reduce its dependence on the US, according to analysts, as both sides seek to accelerate economic diversification.

Canadian International Trade Minister Maninder Sidhu confirmed to 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, following Ottawa and the bloc’s announcement of initial talks in 2021.

The agreement would open new markets and opportunities for Canadian workers and businesses across the region, Sidhu said on the sidelines of a trade meeting with his Philippine counterpart, Cristina Roque, and Finance Secretary Frederick Go.

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.

Free trade talks had begun in late 2021 occurred when “the world was in a different place”, Sidhu said, adding that there was now political will to finalise the free trade pact with Asean this year.

Last year, Canadian Prime Minister Mark Carney set out Ottawa’s ambition to double the country’s exports to non-US markets to C$600 billion (US$437 billion) annually by 2035.

Canada pushes to finalise Asean trade deal to cut US reliance

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Ottawa is keen to sign an FTA with Asean this year, as analysts predict two-way growth in sectors ranging from mining to manufacturing

Ottawa is keen to sign an FTA with Asean this year, as analysts predict two-way growth in sectors ranging from mining to manufacturing