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Canada looks to diversify its trade with Southeast Asian nations

Canada's top diplomat has said that it is working to reach a free-trade agreement with Southeast Asian countries as part of its push to expand to new markets. This comes in response to the high tariffs levied by the United States on Canada, its largest trading partner and neighbour.

Anita Anand, Canada's Foreign Minister, said that Canada plans to maintain a multilateral trading relationship with the Association of Southeast Asian Nations. She added that Canada believes Indo-Pacific will drive the global economy in the coming years.

Anand said in an interview that the work was being done quickly to finalise text of the Free Trade Agreement, after her meeting in Malaysian capital with ASEAN counterparts.

She said that the project was complex, but she expressed her desire to see it completed as quickly as possible.

Anand stated that the ASEAN-Canada FTA was one of the ways Canada could diversify its trading relationships beyond the Group of Seven countries.

She added that Canada would also collaborate with ASEAN in the areas of energy, food safety, digital economy, and artificial intelligence.

Government data shows that Canadian companies are increasing trade with countries other than the United States and smaller markets in order to minimize the economic damage caused by President Donald Trump's new tariffs.

Canada, which is the United States' top supplier of aluminum and steel, will face tariffs on metals as well as auto exports.

If a deal is not reached by July 21, the government could impose counter-duties against the United States.

Anand refused to comment on the progress of the talks, but said Canada looked forward to a positive deal with the United States.

She said that "Our trade negotiators are involved in complex trade negotiations in order to ensure Canada's best interests are represented." (Reporting and editing by David Stanway; Danial Azhar is the reporter)

(source: Reuters)