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Canada is preparing to become a strategic partner for Asian countries, which supports trade progress.

Canada is preparing to become a strategic partner for Asian countries, which supports trade progress.

By Mounira Magdy

Published: September 4, 2023

Canada's status in the Indo-Pacific region is set to receive a boost, as the Association of Southeast Asian Nations prepares to make Ottawa its latest strategic partner when Prime Minister Justin Trudeau visits Indonesia.

This move by the organization serves as a symbolic gesture that acknowledges Canada's expanded presence in the region and reflects the progress made on the Canada-Asian free trade agreement, with the partnership expected to be ratified during Trudeau's visit to Jakarta on Tuesday and Wednesday alongside Trade Minister Mary Ng.

Trudeau left Ottawa last night, Sunday, with his son Xavier.

During his visit, he will meet with Indonesian President Joko Widodo to discuss climate change, food security, and strengthening economic ties – a part of which includes energy production and trade.

The strategic partnership between the Asian nations and Canada is set to be launched on Wednesday, with Trudeau also expected to make statements.

“Asian countries believe that engagement with Canada is much deeper than it was before,” said Wayne Farmer, chair of the Canada-Asia Business Council, in an interview from Jakarta, Indonesia.

He added, “We are trading more, collaborating more, and it's good to see that for us. It's another small incremental step in the right direction.”

The Asian bloc, consisting of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, has been working to strengthen its relations with Canada for years.

Though it has not been a strategic partner until this visit, the European Union began negotiating a free trade agreement with Canada in 2021.

Farmer, who is involved in those discussions, stated that the talks are progressing well.

Another round of negotiations is expected to take place later this month, with parties agreeing to finalize the agreement by 2025.

Farmer noted that it is unusual to see Canada offered this trade opportunity as others like the United States and the European Union – already strategic partners with Asians – are pressuring for their trade negotiations with the bloc, adding, “We've certainly turned a corner in our selection.”

The Indo-Pacific region is Canada's second-largest goods export market after the United States, with the annual trade value reaching $270 billion last year.

However, Javel Congtza, director of international policy at the Canadian Chamber of Commerce, stated that the top priority for local businesses is to reduce trade barriers within the region.

Trade in Canadian goods with ASEAN increased by about 29 percent in 2022, with agricultural business being one of the largest economic sectors.

Cangtza said, “There is a real need for Canadian talent and the goods it can provide to the region.”

The demand has increased following the economic disruption caused by the COVID-19 pandemic and the Russian invasion of Ukraine, which has also amplified calls in the Indo-Pacific region to accelerate the energy transition.

Goldy Hayder, CEO of the Canada Business Council, said, “These regions use a large amount of coal as an energy source, and to me, the best thing Canada can do to help reduce global emissions is to urge coal-dependent countries to transition to these other forms of energy.”

Farmer explained that ASEAN views Canada and its companies as allies in providing the technology, services, and products needed to address food insecurity and the green energy transition while building smart cities.

He added, “There is a balance here, especially with developing countries, to continue to grow their economy and lift their people into the middle class and economic prosperity while transitioning in energy to mitigate environmental impacts.”

Government officials say that the main topic Trudeau will address while in Jakarta is driving climate action alongside fostering economic growth.

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