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Canada Speeds Up ASEAN Free-Trade Talks and Seals Security Pact With Japan

Ottawa seeks to reduce dependence on US markets by expanding trade ties in Southeast Asia alongside a new security pact with Japan.

Canadian Foreign Minister Anita Anand speaks during an interview at Kuala Lumpur, Malaysia July 10, 2025. REUTERS/ Hasnoor Hussain
Image of the map of the world, with half of the maple leaf, and the Canada logo, with the following text overlayed: Japan and Malaysia

Overview

  • Foreign Minister Anita Anand signed the Canada-Japan Security of Information Agreement in Tokyo to deepen defence and intelligence collaboration with Japan.
  • At the ASEAN Post Ministerial Conference in Kuala Lumpur, Canada moved to accelerate finalisation of the ASEAN-Canada free trade agreement text that has been under negotiation since 2021.
  • The proposed FTA would grant Canadian businesses new preferential access to markets that currently make ASEAN its fourth-largest merchandise trading partner.
  • Ottawa is engaging ASEAN partners on energy, food security, the digital economy and artificial intelligence as key pillars of its Indo-Pacific Strategy.
  • The urgency of diversification has been driven by US tariffs on Canadian steel, aluminium and auto exports, prompting Ottawa to seek new markets.