Prime Minister Mark Carney is promoting Canada as a dependable partner for Southeast Asia, highlighting its commitment to rules-based trade amidst changing global trade norms led by U.S. President Donald Trump. Carney is on his way to the Association of Southeast Asian Nations (ASEAN) summit, where he aims to attract investment to Canada, aligning with the nation-building plans that were central to the Liberals' election platform.
In a recent speech that laid out his government's first budget, Carney announced that Canada is aiming to double its exports to non-U.S. markets over the next decade, targeting approximately $300 billion in new trade. This initiative is part of Canada's broader strategy to diversify its trade relationships.
However, just a day after Carney's speech, Trump canceled ongoing trade negotiations with Canada due to his discontent with an anti-tariff ad campaign run by the Ontario government on American media outlets. Although Trump will also attend the ASEAN summit, the Prime Minister's Office has confirmed that no meeting is arranged between Trump and Carney.
In comments to the press, Trump expressed that he does not intend to talk or meet with Carney, labeling the Ontario advertisement as "crooked" and "possibly illegal." Meanwhile, Wayne Farmer, president of the Canada-ASEAN Business Council, shared insights indicating that Canada is actively engaging more with businesses within the Southeast Asian region. He emphasized that ASEAN is keen to strengthen ties with Canada, viewing it as a reliable and stable partner for collaborative efforts.
Historically, Canada perceived the 10-nation ASEAN bloc primarily as a development partner; however, senior government officials noted that ASEAN countries are increasingly recognized as significant commercial partners. Carney is attending the ASEAN leaders' summit as a guest of Malaysian Prime Minister Anwar Ibrahim, where they are expected to discuss topics such as green energy and critical minerals during their scheduled bilateral meeting.
During his two-day visit to Kuala Lumpur, Carney plans to meet with an oil and gas company as well as representatives from Malaysia’s central bank, in addition to touring an aerospace facility. Farmer remarked on the government's initiative to send positive signals through major projects legislation aimed at expediting the approval process for significant ventures that are deemed nationally beneficial. This change in approach has been positively received, although Farmer cautioned that the "proof is still in our ability to execute."
ASEAN nations, which include some of the globe’s rapidly growing economies, are concentrating on enhancing their energy and food security. Vina Nadjibulla, vice-president of the Asia Pacific Foundation, highlighted Canada's capacity to contribute to research and development in agriculture, particularly in areas such as fortified grains and pulses. She noted that countries worldwide are now seeking to diversify their economies to mitigate vulnerabilities and enhance economic resilience.
Malaysia is participating in the initial phase of the LNG Canada project, with the second phase included among the major initiatives that the Liberal government has pledged to fast-track for approval. Additionally, nuclear energy is a priority for several Southeast Asian nations, including Vietnam and Malaysia, where Canada possesses substantial expertise and capacity.
Kai Ostwald, director of the Institute of Asian Research at the University of British Columbia, pointed out that Canada can resonate with ASEAN countries regarding security approaches. He observed that Canada shares similarities with many Southeast Asian nations, as neither is significant enough to change global politics but must navigate the geopolitical landscape collectively when possible.
Efforts are currently underway to finalize a trade agreement between Canada and ASEAN, which is anticipated to be signed in early 2026. Both parties are also working to conclude the next phase of a five-year action plan that is set to expire at the end of the current year.
