Singapore: ASEAN and Canada must swiftly finalize their free trade agreement (FTA) to mitigate overreliance on major markets like the United States or China.
According to BERNAMA News Agency, an independent, not-for-profit organization, diversification has become crucial following Washington’s imposition of costly tariffs on numerous trading partners.
APF Canada’s president and chief executive officer, Jeff Nankivell, emphasized the necessity for Canada to ‘rewire its supply chains’ and explore new markets, particularly in Southeast Asia. Speaking from APF Canada’s newly established Asia regional office in Singapore, Nankivell highlighted the risks associated with Canada’s heavy reliance on the North American economy. He stated, “Canada feels that risk more than ever, which is why we need to look at Southeast Asia and beyond.”
The organization’s mission is to act as a catalyst for Canada’s engagement with Asia and serve as Asia’s bridge to Canada. Nankivell noted that Ottawa and Southeast Asia are currently bearing the consequences of Washington’s costly tariffs, underlining the need for global interdependence as both a blessing and a curse.
Nankivell is set to moderate a plenary session at the Canada-ASEAN Business Forum, accompanied by his regional office director Barrett Bingley and the team in anticipation of ASEAN private and government sector functions this week. APF Canada, as the official knowledge partner of the flagship event, plans to present two research papers.
Nankivell also addressed trade risks extending beyond the US, highlighting China’s use of arbitrary and coercive measures impacting Canada, despite Ottawa’s lesser dependency on Beijing. He noted that ASEAN economies have needs that Canada is well-positioned to meet, creating a two-way opportunity for both regions.
Nankivell added that ASEAN leaders are eager to diversify their trade relationships, creating momentum for the ASEAN-Canada FTA. He stressed the importance of concluding negotiations that began four years ago.
He also pointed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which Malaysia and Canada are signatories, as a potential pathway for deeper engagement with the European Union (EU). The UK’s exit from the EU and entry into the CPTPP will reshape global trade links, according to Nankivell.
APF Canada sees the CPTPP as a robust mechanism for advancing high-standard global trade and supports its careful expansion. Nankivell emphasized the need for stronger dispute settlement mechanisms in response to US tariffs and policy shifts. He noted the World Trade Organization’s (WTO) impasse, particularly the stalled dispute settlement system, due to the US boycott of its appeal mechanism.
In conclusion, Nankivell remarked on the unpredictability of the US as a trade partner, highlighting the need for alternative solutions to uphold the rules of trade.