ASEAN and Canada accelerate FTA talks, aim to conclude by late 2025

Thailand's deputy minister of commerce, Suchat Chomklin, has revealed that Canada recently hosted the 11th round of ASEAN-Canada Free Trade Agreement (ACAFTA) negotiations in Bangkok from January 15-17. 

The talks focused on advancing discussions across various sectors, with both parties aiming to reach a significant conclusion by the end of 2025.

The latest round of negotiations included meetings of seven working groups, covering crucial areas such as sanitary and phytosanitary measures, technical barriers to trade, regulatory best practices, trade in services, investment, intellectual property rights, and legal and institutional frameworks.

"Thailand fully supports the ASEAN-Canada FTA and its completion in 2025, as it will mark Thailand's first free-trade agreement with a North American nation," Suchat said. "This agreement will boost business confidence and enhance trade and investment opportunities between the two regions." 

Chotima Iemsawasdikul, director general of the Department of Trade Negotiations of the Ministry of Commerce of Thailand, provided additional insights into the meetings. 

She emphasised that the discussions monitored progress across 19 ACAFTA working groups, with particular attention paid to areas experiencing delays. Key priorities include negotiations on tariff-reduction modalities between member states, finalising framework structures for service trade and investment, and addressing rules of origin requirements.

Canada has proposed specific rules of origin for 5,612 items, which ASEAN members are currently reviewing. The negotiations also encompass sustainable trade and development, with ASEAN preparing to submit a draft proposal for Canada's consideration.

Bilateral trade figures reveal that Thailand-Canada trade was valued at US$2.93 billion in 2023, marking a 10.41% decrease from 2022. Thai exports to Canada totalled US$1.90 billion, with key exports including processed seafood, steel products, computer equipment, rice, rubber products, and automotive parts. 

Meanwhile, imports from Canada amounted to US$1.03 billion, primarily consisting of electrical circuits, plant products, fertilisers, machinery, and paper pulp.

Recent data for the first 11 months of 2024 show total trade volume between Thailand and Canada reaching US$2.96 billion, with Thailand maintaining a trade surplus of US$937.95 million. Thai exports during this period amounted to US$1.95 billion, while imports stood at US$1.01 billion.

The negotiations continue to progress with both online and in-person meetings scheduled to ensure the targeted completion date is met, representing a significant step forward in strengthening economic ties between ASEAN and Canada.