ASEAN and Canada Reaffirm Commitment to Deepen Economic Ties at 14th AEM-Canada Consultation
- Canada-ASEAN Business Council (CABC)
- Oct 7
- 2 min read
Kuala Lumpur, 26 September 2025, ASEAN Economic Ministers and Canada reaffirmed their shared commitment to advancing trade, investment, and sustainable development during the 14th ASEAN Economic Ministers–Canada (AEM–Canada) Consultation, held in Kuala Lumpur, Malaysia.
Strengthening Trade and Investment
In 2024, two-way merchandise trade between ASEAN and Canada reached USD 23.5 billion (CAD 31.7 billion), while Canadian foreign direct investment (FDI) inflows into ASEAN totalled USD 4.9 billion (CAD 6.6 billion). These figures position Canada as ASEAN’s 16th largest trading partner and 9th largest source of FDI, underscoring the region’s growing importance in Canada’s Indo-Pacific engagement.
Advancing Regional Cooperation and the ACAFTA Negotiations
The meeting welcomed the completion of the 2021–2025 Work Plan under the ASEAN-Canada Joint Declaration on Trade and Investment (JDTI), marking full implementation of all initiatives. Ministers also endorsed the 2026-2030 JDTI Work Plan, which will deepen cooperation in key sectors such as the digital economy and artificial intelligence, clean energy and infrastructure, agriculture and agri-food, aerospace and transportation, natural resources, and financial services.
The Ministers also highlighted ongoing progress in negotiating the ASEAN-Canada Free Trade Agreement (ACAFTA), recognizing its potential to boost trade and investment flows, strengthen supply chains, and drive long-term prosperity. Both sides expressed a shared commitment to conclude a high-quality, comprehensive, and mutually beneficial agreement by 2026.
Supporting Inclusive and Sustainable Growth
Canada reaffirmed its commitment to the Indo-Pacific Strategy, emphasizing ASEAN centrality and support for initiatives like the Team Canada Trade Missions across ASEAN in 2024–2025. These efforts aim to enhance connectivity, digital innovation, and inclusive growth throughout the region.
CABC’s Ongoing Role
The meeting also acknowledged the vital role of the Canada-ASEAN Business Council (CABC) in strengthening private-sector engagement. The Ministers noted the growing interest of Canadian companies in ASEAN markets and appreciated CABC’s continued support for the ACAFTA negotiations, as well as its 2025 Business Outlook Survey and the Canada-ASEAN Business Forum held alongside the 57th AEM Meeting.
CABC’s recommendations to enhance collaboration in digital economy, sustainable energy, and food security were well-received, reflecting the shared commitment to building a resilient, forward-looking partnership between ASEAN and Canada.
Looking Ahead
The meeting concluded by reaffirming the importance of a rules-based multilateral trading system with the WTO at its core and emphasized cooperation toward WTO reform ahead of the 14th Ministerial Conference in Cameroon (March 2026). The Ministers also reaffirmed support for Timor-Leste’s integration into ASEAN, emphasizing capacity-building and economic inclusion efforts.
Read the Joint Statement below:
