Prime Minister Mark Carney is seeking to finalize a free trade agreement between Canada and the Association of Southeast Asian Nations (ASEAN) during the bloc’s 49th summit in Manila, Philippines. The proposed agreement is expected to create new opportunities for Canadian businesses, potentially generating more than $3.5 billion in exports to Southeast Asian markets.
The trade initiative forms part of Ottawa’s broader strategy to diversify its international economic partnerships and reduce Canada’s dependence on the United States. According to government projections, the proposed ASEAN-Canada Free Trade Agreement could increase Canada’s gross domestic product by approximately $2.55 billion while strengthening commercial ties with one of the world’s fastest-growing economic regions.
Trade between Canada and ASEAN has already expanded significantly. Two-way merchandise trade reportedly reached $52.5 billion in 2025, representing an increase of nearly 24% compared with the previous year. The proposed agreement would aim to build on this growth by reducing trade barriers, improving market access and creating additional opportunities for Canadian exporters and investors.
Alongside negotiations with the broader ASEAN bloc, Carney is also pursuing a separate bilateral free trade agreement with the Philippines. The proposed deal is intended to deepen economic cooperation between the two countries, with projections suggesting that bilateral trade could triple by 2035. The Philippines is viewed as an increasingly important market for Canadian businesses seeking to expand their presence in Southeast Asia.
Carney’s visit to Manila is part of a nine-day international tour from November 11 to 19, covering Ireland, the Philippines, Cambodia and China. The diplomatic mission is focused on expanding trade relationships, attracting investment and strengthening Canada’s economic position amid growing uncertainty in global markets and ongoing trade tensions with Washington.
The negotiations reflect the federal government’s efforts to establish a more diversified trade network while strengthening Canada’s presence in the Indo-Pacific region. If finalized, the ASEAN agreement could provide Canadian
