prime minister Mark Carney represents Canada as a stable and reliable partner for Southeast Asian countries during his participation in the ASEAN Summit in Malaysia, his longest overseas trip since taking office.
Carney arrived in Kuala Lumpur on Saturday after a 24-hour flight on a mission to expand trade and attract investment to Canada, just days after the US president. Donald Trump interrupted trade negotiations with Ottawa.
Trump ended the talks Thursday by citing an Ontario government ad that aired on U.S. television stations that featured footage of former President Ronald Reagan speaking out against tariffs as a reason.
Speaking to reporters, Trump called the ad “crooked” and “possibly artificial,” saying: “Canada lied. I mean, what they did was terrible. They made up a false statement from President Reagan. Reagan was a big proponent of tariffs when necessary.”
When asked if he would meet with Carney during his trip to ASEAN, Trump told reporters: “I have no intentions, no.”
Trade expert William Pellerin said he didn't think the dispute over advertising could be the real reason the negotiations failed.
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“I think there are a lot of other things on the United States administration's side that maybe it's not really a matter of hype, but maybe it's a matter of the negotiations not going exactly the way the United States administration would like them to,” he said.
Pellerin added that tariffs are hurting Canadian industry.
“Tariffs are really having a very damaging impact… we're starting to see a tsunami of layoffs in a number of sectors of the economy,” he said, noting the auto and steel industries were particularly stressed.
Jamie Tronnes, a foreign affairs expert, said the dispute highlights the unpredictability of U.S. trade policy under Trump.
“Every time it looks like we're about to make progress on an agreement, something happens and the Americans walk away from the table,” she said.
“The challenge for Canada is to have confidence. We need to be confident that when we start discussing issues, our deal isn't thrown under the bus at the last minute.”
Tronnes said ongoing uncertainty around U.S. trade policy makes it difficult for allies to trust long-term deals. “We have to be able to trust that when we come to the negotiating table, our deal won't be thrown under the bus at the last minute,” she said.
As tensions with Washington rise, Carney is using the ASEAN summit to build new relationships.
He will meet Malaysian Prime Minister Anwar Ibrahim on Monday to discuss clean energy and critical minerals, and will also visit Malaysia's central bank, an oil and gas company and an aerospace facility.
Wayne Farmer, president of the ASEAN Canada Business Council, said the region views Canada positively.
“I think ASEAN is very keen to do more with Canada, seeing us as a reliable and stable partner that they can plan cooperation with,” he said.
Despite the challenges, experts remain hopeful that Carney's work in Asia will help ease tensions with Washington and support Canada's goal of doubling exports to markets outside the United States over the next decade.
“Trade diversification is absolutely important… there is no doubt that diversification into the US is a good strategy,” Pellerin said.
— With files from The Canadian Press.
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