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. According to ASEAN’s preliminary statistics, ASEAN-Canada two-way trade was recorded at USD 23.4 billion in 2024, up from USD 20.3 billion in 2023. In terms of investment, Foreign Direct Investment (FDI) inflow from Canada was valued at USD 4.9 billion in 2024, a significant rebound from 2023, when Canada recorded a negative investment of USD 2.2 billion. As a group, ASEAN represents Canada’s sixth-largest trading partner.
Joint Declaration between ASEAN and Canada on Trade and Investment (JDTI) was signed on 2 October 2011 in Jakarta, Indonesia. Since then, three 5-year Work Plans have been endorsed to implement the JDTI, i.e. the 2012-2015 Work Plan (endorsed at the 1st AEM-Canada Consultations on 31 August 2012 in Siem Reap, Cambodia), the 2016-2020 Work Plan (endorsed at the 4th AEM-Canada Consultation on 25 August 2015, Kuala Lumpur, Malaysia), and the 2021-2025 Work Plan to implement JDTI (endorsed by 9th AEM-Canada Consultations on 29 August 2020).
Following the conclusion of the ASEAN-Canada JDTI for 2021-2025, the 14th AEM-Canada Consultation will endorse the ASEAN-Canada JDTI Work Plan for 2026-2030. This Work Plan serves as a guiding document for officials in implementing the ASEAN-Canada JDTI, which aims to strengthen commercial ties and deepen economic cooperation between ASEAN and Canada.
Since the launch of the ACAFTA negotiation in November 2021 during the 10th AEM-Canada Consultation, a total of 15 ACAFTA Meetings have been convened, comprising of 14 regular rounds and 1 special round. The most recent meeting, the 14th ACAFTA TNC Meeting and Subsidiary Bodies Meetings, were held from 7-11 July 2025 in Kuala Lumpur, Malaysia. According to the analysis conducted by ASEAN, it shows that the impact of an agreement which includes goods liberalisation, a reduction of NTMs and improvements to trade facilitation would increase ASEAN’s GDP by USD 39.4 billion, or equivalent to 1.6 percent increase, and Canada’s GDP by USD 5.1 billion, or equivalent to 0.3 percent increase. Likewise, an agreement would increase ASEAN’s exports to Canada by USD 3.36 billion, equivalent to 18.7 percent increase, and Canadian exports to ASEAN by USD 3.18 billion, equivalent to 26.5 percent increase.
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 sides 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
