ASEAN – Canada Free Trade Agreement (ACAFTA)

What is the ASEAN-Canada Free Trade Agreement (ACAFTA)?

• Full name: ASEAN–Canada Free Trade Agreement
• Abbreviation: ACAFTA (ASEAN–Canada Free Trade Agreement)
• Participating members: 10 ASEAN countries (Vietnam, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, and Thailand) and Canada.
• Signing date: Targeted for completion of negotiations in 2025 (not yet signed).
• Effective date: To take effect after signing and ratification by all member states (expected post-2025).

The ASEAN-Canada Free Trade Agreement (ACAFTA) is a proposed high-standard trade deal currently under negotiation between the ten ASEAN member states (Vietnam, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, and Thailand) and Canada. Building on a long history of cooperation, with Canada being a Dialogue Partner of ASEAN since 1977, ACAFTA aims to expand trade and investment, strengthen economic ties, and improve market access for both regions. Formal negotiations for ACAFTA were launched in 2021, with exploratory discussions beginning in 2017, and talks are currently progressing actively towards a targeted completion in 2025. This agreement is envisioned as a comprehensive, ‘next-generation’ FTA, designed to promote market expansion and diversification, foster economic growth (with a joint feasibility study estimating an increase of nearly USD 40 billion for ASEAN’s GDP and USD 5.1 billion for Canada’s GDP), and cover modern issues such as labor, environment, clean technology, and energy transition.

What will the ACAFTA agreement cover?

The ASEAN-Canada Free Trade Agreement (ACAFTA) is being negotiated as a comprehensive and high-quality FTA, designed to cover multiple sectors and address a wide range of trade and economic issues. While the final text and chapter structure are not yet complete, several core working groups have been established to define its scope. Based on negotiation rounds and discussions, ACAFTA is expected to include key chapters such as Trade in Goods (focusing on tariff reduction), Rules of Origin, Trade in Services and Investment, Sanitary and Phytosanetary Measures (SPS), Technical Barriers to Trade (TBT), Intellectual Property Rights, Customs Procedures and Trade Facilitation, Trade Remedies, Government Procurement, Trade and Sustainable Development (including Environment & Labour), and Transparency and Dispute Settlement.

Where can I find official information about ACAFTA?

As the ASEAN-Canada Free Trade Agreement (ACAFTA) is still under negotiation and has not yet been concluded or signed, no official full text or implementation documents are currently available. However, stakeholders can find official updates and information on the negotiation process, rounds, and respective country positions through designated government portals. For Vietnam, the Vietnam FTA Portal (Ministry of Industry and Trade) provides updates under its ‘FTAs under negotiation’ section. The WTO and Integration Center (VCCI) also regularly organizes seminars and publishes analytical reports on ACAFTA’s expected impacts. For Canada’s perspective, Global Affairs Canada (Department of Foreign Affairs, Trade and Development) offers official updates on Canada’s negotiation progress with ASEAN.