Kuala Lumpur was briefly the centre of the diplomatic universe this week, playing host to leaders from the Association of Southeast Asian Nations (ASEAN) and across the world for three days of dealmaking and talks.
The summit, running from Sunday to Tuesday, convened ASEAN's 11 members for talks on trade, the digital economy, and sustainability, alongside meetings with delegations from Canada, Australia, China, India, Japan, Russia, South Korea, and the U.S.
The event's bright spots were Timor-Leste's formal accession to ASEAN and the signing of a “pathway to peace” deal between members Cambodia and Thailand. But ASEAN leaders failed, once again, to make progress on the bloc’s most pressing challenge: Myanmar’s civil war, which has killed thousands and displaced more than 3.5 million since 2021.
Inching towards Asia
Speaking from Kuala Lumpur, Canadian Prime Minister Mark Carney said that the “Canada–ASEAN relationship is full of potential.”
Carney, on his first official trip to Asia, acknowledged that “the system of global trade is undergoing a fundamental change,” requiring Ottawa to diversify its trade, investment, and security partnerships. His stated goal is to double non-U.S. exports within 10 years and attract US$500 billion in new investment to Canada in the next five years. The Indo-Pacific will be central to this endeavour; for now, however, the region only accounts for 12 per cent of Canadian exports.
Carney held a series of meetings at the summit, including with Vietnam, the next chair of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Canada’s largest trading partner in Southeast Asia.
He also met with Philippine President Ferdinand Marcos Jr., with both leaders agreeing to conclude a bilateral free trade agreement (FTA) on the same timeline as the ASEAN–Canada FTA, expected to be finalized in 2026. Additionally, according to Manila, Canadian Defence Minister David McGuinty will be in the Philippines next week to sign a bilateral Visiting Forces Agreement, which will “establish a framework for increased [military] co-operation.”
Carney also met with Malaysia’s prime minister, Anwar Ibrahim. The two leaders welcomed a letter of intent to deepen investment in LNG, oil, nuclear, and renewable energy.
The art of the deal
The blooming "bromance" between Carney and U.S. President Donald Trump appears to have died on the vine, ruptured by a recent ad run by the Ontario government and a fresh set of U.S. tariffs. In Kuala Lumpur, Trump sought out other leaders — ostensibly ignoring Carney — and inked trade deals with Cambodia and Malaysia, alongside "frameworks" for deals with Thailand and Vietnam.
ASEAN leaders have abandoned the idea of banding together as a bloc to negotiate with the U.S., instead seeking bilateral trade deals with Washington.
The U.S.’s agreement with Malaysia contains several restrictive clauses, including a requirement that Malaysia also impose any export control or “[import restriction] on a good or service” implemented by the U.S. against a third country. Malaysia also agreed to invest US$70 billion in the U.S. over the next 10 years and refrain from imposing export controls on U.S.-bound critical minerals.
Trump met Chinese President Xi Jinping in South Korea today, where the two leaders discussed tariffs, fentanyl, and rare earths. Chinese and American officials reached a framework agreement ahead of the meeting.
