As negotiations for the ASEAN-Canada Free Trade Agreement (ACAFTA) gain momentum, Laos and Canada are strengthening their bilateral partnership to ensure that Laos fully capitalizes on the deal’s benefits. On February 18, 2025, the Embassy of Canada to Laos hosted a workshop in Vientiane to discuss emerging trade issues and Canada’s ACAFTA objectives, focusing on inclusive trade, environmental provisions, and labor standards.
The event, attended by Lao government officials, trade negotiators, and business leaders, built upon commitments made during the ASEAN Summit in Vientiane in October 2024, where both sides agreed to finalize ACAFTA by the end of 2025. Saysana Sayakone, Director General of the Department of Trade Negotiation and Economic Cooperation at the Lao Ministry of Industry and Commerce, emphasized that ACAFTA presents a transformative opportunity for Laos, enabling greater market access, increased investment attraction, and deeper integration into regional and global value chains.
Canada’s engagement with ASEAN’s 10 member states, including Laos, aligns with its broader Indo-Pacific economic strategy. During the 11th round of ACAFTA negotiations, hosted by Canada in Bangkok from January 15-17, 2025, working groups tackled key areas such as sanitary and phytosanitary measures, trade in services, investment, intellectual property rights, and rules of origin requirements.
For Laos, securing favorable trade terms within ACAFTA is critical for economic diversification and attracting sustainable foreign direct investment (FDI). Canada’s Chargé d’Affaires to Laos, Kent Vachon, underscored that trade diversification offers mutual benefits, positioning Laos as an attractive investment destination while expanding Canada’s economic footprint in Southeast Asia. With ASEAN already ranking as Canada’s fourth-largest merchandise trading partner, ACAFTA is expected to boost trade volumes and strengthen business confidence across the region.
