Overview
ASEAN-Canada dialogue relationship was established in February 1977. In 1981, the ASEAN-Canada Economic Cooperation Agreement (ACECA) was signed, laying the grounds for industrial, commercial, and technical cooperation between the two sides. In the past decade, Canada ranked as the 9th largest trading partner among ASEAN’s Dialogue Partners for most of the time. Accroding to preliminary ASEAN statistics, the total merchandise trade value reached USD 17.1 billion in 2019 marking an 8.8% increase from the previous year. Based on Canadian statistics, the total two-way merchandise trade reached USD 20.5 billion in 2019. The stock of Canadian foreign direct investmen in ASEAN amounted to USD 13.2 billion while the stock of ASEAN foreign direct investment in Canada was at USD 396 million. As a group, ASEAN represents Canada’s sixth-largest trading partner (2018).
On 2 October 2011, ASEAN and Canada signed the Joint Declaration on Trade and Investment (JDTI) which guides economic engagement between ASEAN-Canada. Since then, three five-year Work Plans had been endorsed to implement the JDTI. The current JDTI Work Plan will expire this year, while the 2021-2025 JDTI Work Plan was endorsed on 29 September 2020 setting out cooperation activities for the next five years. The highlights of implementation of the JDTI Work Plan is reported regularly to the Ministers at AEM-Canada Consultations by the Senior Economic Officials (SEOM).
During the 5th AEM-Canada Consultations in August 2016, ASEAN and Canada agreed to establish a Trade Policy Dialogue (TPD) to discuss and enhance mutual understanding on specific economic issues. There have been four TPDs conducted since then.
Priorities Areas of Cooperation
Under the 2021-2025 JDTI Work Plan, both sides will be undertaking comprehensive range of activities that are in line with the agreed goals, namely: i) bolster the ASEAN-Canada dialogue on trade and Investment; and (ii) promote and facilitate increased involvement of the private sector in economic activities between Canada and ASEAN to increase trade and investment.
ASEAN and Canada have engaged in several discussions on potential benefits in establishing an ASEAN-Canada FTA. Both sides had completed a Joint Feasibility for a possible ASEAN-Canada FTA, conducted two rounds of exploratory discussion (ED) for a possible ASEAN-Canada FTA, as well as exchanges at the ASEAN-Canada Trade Policy Dialogues to enhance the mutual understanding on each other’s approach to issues under their respective FTAs. Both side are working on a reference paper that would identify – on a “without prejudice” basis – the possible FTA’s objectives, proposed chapters/elements, including the potential level of ambition for each, areas of convergence and divergence, and other relevant considerations. The reference paper will be submitted for the Ministers’ further consideration at the next AEM-Canada Consultations in 2021.
Major Sectoral Bodies/Committees
- AEM-Canada Consultations: consist of Economic Ministers from ASEAN and Canada and are held annually to consider the progress of the overall economic relations and provide guidance and directions for the economic relations.
- SEOM-Canada Consultations: consist of senior economic officials from ASEAN and Canada, and are conducted regularly to support the Ministers in implementing the various initiatives and measures to support economic cooperation between ASEAN and Canada.
Key Documents
Statement/ Press Releases:
- Joint Media Statement of the 9th AEM-Canada Consultations, 29 August 2020
- Joint Media Statement of the 8th AEM-Canada Consultations, 10 September 2019, Bangkok, Thailand
- Joint Media Statement of the 7th AEM-Canada Consultations, 1 September 2018, Singapore
- Joint Media Statement of the 6th AEM-Canada Consultations, 8 September 2017, Pasay City, Philippines
- Joint Media Statement of the 5th AEM-Canada Consultations, 4 August 2016, Vientiane, Lao PDR
- Joint Media Statement of the 4th AEM-Canada Consultations, 25 August 2015, Kuala Lumpur, Malaysia
- Joint Media Statement of the 3rd AEM-Canada Consultations, 27 August 2014, Nay Pyi Taw, Myanmar
- Joint Media Statement of the 2nd AEM-Canada Consultations, 21 August 2013, Bandar Seri Begawan, Brunei Darussalam
- Joint Media Statement of the 1st AEM-Canada Consultations, 31 August 2012, Siem Reap, Cambodia
Publications and Related Links to The Sector
A Joint Feasibility for a possible ASEAN-Canada FTA: was conducted by Global Affairs Canada, on behalf of Canada, and the Economic Research Institute for ASEAN and East Asia (ERIA), on behalf of ASEAN. The Joint Feasibility Study on potential ASEAN-Canada FTA (JFS) was presented to the Ministers at the 7th AEM-Canada Consultations in 2018. The JFS provided an overview of ASEAN and Canadian economies, including key bilateral trends in terms of trade in goods, services and investment; examined each party’s broader approach to FTA negotiations; and evaluated the potential benefits of an ASEAN-Canada FTA.
For the public version of the executive summary of the JFS, please click here
