Canada seeks South-east Asia trade deal to blunt Trump tariffs
The nation seeks to reduce its reliance on the US market amid rising American protectionism
[KUALA LUMPUR] Canada’s top diplomat said she aims to finalise a free trade agreement with South-east Asian nations “as soon as possible,” as the country looks to expand economic ties in the face of tariffs from US President Donald Trump.
“We are diversifying and we are establishing those trade relationships,” Anita Anand, who has been Canada’s foreign minister since May, told Bloomberg TV Thursday on the sidelines of an Association of South-east Asian Nations summit in Kuala Lumpur. “We are currently negotiating with Asean a free trade agreement, and we look forward to the conclusion of those negotiations.”
Her remarks come as Canada, like many countries, seeks to reduce its reliance on the US market amid rising American protectionism. Although the US, Canada and Mexico have a trade pact signed during Trump’s first term, the president has imposed import taxes of 50 per cent on foreign steel and aluminium, along with levies on cars and trucks – all major Canadian exports.
“Those tariffs are hitting us as well, and we believe they’re unjustified,” Anand said, adding that “we’re engaged in complex negotiations with the US to address the tariffs.”
To expand trade in Asia, Canada has invested heavily in export infrastructure. The government bought and expanded the Trans Mountain pipeline, its only west coast conduit capable of filling oil tankers for Pacific shipments. Meanwhile, a consortium including Shell, Malaysia’s Petronas and PetroChina recently began operations at a major liquefied natural gas facility in British Columbia.
Still, Canada remains heavily dependant on US trade, with about three-quarters of its exports – including most oil, gas and autos – going south of the border last year.
Trade frictions with China also persist. Beijing has imposed tariffs on Canadian canola and other agricultural products in response to Canada’s levies on Chinese electric vehicles, steel and aluminium.
In South-east Asia, Anand said Canada wants “to continue to support multilateralism, to continue to show the world that as there is global stress in the geo-strategic environment, Canada is a partner that will always show up to open the doors to trade.” BLOOMBERG
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