A free trade agreement (FTA) between Canada and the Association of Southeast Asian Nations (Asean) is on the horizon, with expectations for its conclusion by next year, according to Canadian and Thai officials privy to the discussions. Surin Thanalertkul, the Canadian embassy trade commissioner, and Martin Sullivan, senior market development officer at the Canada Indo-Pacific Agriculture and Agri-Food Office (IPAAO), shared their insights with the Bangkok Post. This took place during the Catch of Canada event, co-hosted by the Canadian Chamber of Commerce Thailand, the Canadian embassy, and Canada IPAAP in Bangkok, aimed at promoting Canadian seafood and agricultural products in Thailand.
Both officials expressed optimism that the Canada-Asean FTA would soon be finalized, significantly boosting trade between the two markets, including with Thailand. Mr. Surin highlighted that these negotiations would streamline bilateral trade between Thailand and Canada, overcoming existing hurdles. Currently, while trade between the two nations is healthy, challenges remain, particularly related to market access, tariffs, and technical issues that arise when Canada exports goods to Thailand.
For instance, when Canadian companies seek to export seafood products to Thailand, they face varying tariffs based on the products’ readiness levels. The closer to the ready-to-eat stage, the higher the tariffs. “This issue will be resolved when Canada and Asean conclude the FTA. We anticipate that the FTA negotiations will be completed by next year,” Mr. Surin added with a note of optimism.
Mr. Martin emphasized that the Indo-Pacific region is not only one of the fastest-growing economic areas globally but also a crucial export market for Canada. “Canada has numerous FTAs with countries and regions like the United States, Mexico, the EU, and under the CPTPP [Comprehensive and Progressive Agreement for Trans-Pacific Partnership]. We are optimistic about strengthening our relationship with Asean and Thailand through this Asean FTA,” he added.
The Canadian government’s official website backs up this enthusiasm. It notes that Canada and Asean announced the conclusion of exploratory discussions for a potential FTA at the Asean Economic Ministers–Canada Consultation in Bangkok on Sept 10, 2019. Forward momentum continued when Canada and Asean agreed on Nov 16, 2021, to proceed with negotiations toward an Asean-Canada FTA. This move aims to create new market opportunities for Canadian goods and services while ensuring a more transparent and predictable trading environment.
Since then, Asean and Canada have held six rounds of talks involving chief negotiators in August and November 2022, and April, June, and September 2023, with the latest round occurring this January. These continued dialogues signify serious intent and progress toward sealing the deal, promising enhanced bilateral relations and economic benefits for both regions.
This FTA sounds promising but let’s not forget how complex these agreements can be to implement. What about environmental and labor standards?
Yeah, I’m worried they’ll ignore those issues just to boost trade. It wouldn’t be the first time!
Exactly, we’ve seen it happen before. Profit often trumps ethics unfortunately.
It does seem like a recurring theme, but maybe this time they’ll put some thought into it. Canada usually has pretty strict regulations, right?
I think trade agreements can actually help improve standards if the provisions are there. Canada and Asean could just include stronger clauses for labor and environment.
It’s about time! The Asean region is full of potential and Canada needs to expand its trade beyond the usual partners.
Totally agree! Diverse trade relationships can make a country more resilient to global economic shifts.
Exactly, and more competition means better prices and quality for consumers. Win-win if you ask me.
But what about the small businesses that could get overshadowed by multinational corporations?
I’m not so sure. More trade can sometimes lead to dependency on imports and hurt local industries.
Does anyone else think this could impact jobs in Canada negatively? More imported goods usually mean less demand for locally produced stuff.
Not necessarily. It could also mean more jobs in sectors like logistics and retail due to increased trade volume.
That’s a good point. I guess it depends on the balance between imports and exports.
True, but let’s not forget the potential for job creation through new export markets. It goes both ways.
We should focus on retraining programs to make sure workers can transition if their jobs are affected.
Will this FTA include any provisions for agricultural subsidies? Canadian farmers need support to compete globally.
Good question. Agricultural policies are often the trickiest part of FTAs. I hope the negotiators are considering that.
Absolutely, our farmers need a level playing field. I’ve seen too many local farms suffer due to cheap imports.
Sometimes these agreements include aid packages or technical support for farmers. Fingers crossed!
Hope they’re considering the environmental impact of increased trade. More shipping means more carbon emissions!
True that! Trade is great but climate change is a real threat we need to address.
Maybe they’ll invest in greener shipping technologies. There’s always a way to balance things.
FTA with Asean will open up new avenues for tech startups in Canada. Exciting times ahead!
Totally! The tech sector is booming in Southeast Asia. This is a golden opportunity for collaboration.
Collaboration is great but they should also be careful about IP theft. It’s a common issue in some of those countries.
I wonder how this will affect the price of seafood in Thailand. Canadian quality is top-notch but also pricey.
If tariffs are reduced, it might make Canadian seafood more affordable in Thailand. A win for seafood lovers!
I’ll believe it when I see it. These trade agreements always promise the world but often fall short in reality.
Can’t blame you for being skeptical. Still, every step toward better global trade relations is worth celebrating.
This is great news for the economy! More trade options mean a more dynamic market.
What about the cultural exchange? Increased trade could also bring new ideas and innovations.
Thailand already has good trade relations with other countries. Will Canada be able to compete?
With quality products and strong relations, Canada should be competitive. Plus, FTAs make a big difference.