(Ottawa) Prime Minister Justin Trudeau on Sunday brandished the state of global supply chains in an attempt to convince a group of Southeast Asian countries to strike a free trade deal.
Mr. Trudeau has long sought a trade deal with the 10-nation bloc, which includes the Philippines, Indonesia, Brunei, Singapore, Malaysia, Thailand, Vietnam, Laos, Cambodia and Burma.
He said at a virtual business summit hosted by the Association of Southeast Asian Nations (ASEAN) that a free trade agreement with Canada would be a “win-win” for all parties. , especially at the end of the pandemic.
Speaking in a pre-recorded message, Trudeau argued that a deal with ASEAN would help businesses and entrepreneurs build ties and trade relationships around the world.
He also said a deal would give investors more confidence to invest in international markets and protect supply chains from the uncertainties brought about by COVID-19.
Trade bottlenecks across the world have been slower to recover than consumer demand for goods, and have been further slowed by COVID-19 outbreaks and ongoing public health measures.
All of this affects stocks of in-demand consumer goods or the delivery of parts needed to build things like cars, and increases transportation costs that are passed on to consumers, which is reflected in higher inflation rates. .
“As we wrap up the fight against COVID-19, deepening our ties with ASEAN economies and diversifying trade across Asia-Pacific will play a crucial role in our recovery,” Mr. Trudeau in his speech.
“My friends, a strong Canada-ASEAN relationship is a clear win-win for all of our businesses and all of our people. ”
The economies of the 10-nation bloc together represent Canada’s sixth largest trading partner, but the country already has access to four ASEAN members – Brunei, Malaysia, Singapore and Vietnam – through a trade deal with the Pacific region known as the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP).
The Liberals’ election platform promised a new hub to help businesses take advantage of CPTPP opportunities and a new Asia-Pacific strategy to deepen ties in the region, including new trade deals.
A preliminary analysis by ASEAN and the federal government on the merits of a free trade agreement estimated that Canadian exports of goods and services to the bloc could increase by 13.3%.
In his speech, Trudeau said both sides must also ensure that women, Indigenous peoples, LGBTQ entrepreneurs, visible minorities and other under-represented business owners get involved in trade and benefit from it.