Canada and Thailand have signed a new memorandum of understanding (MOU) aimed at strengthening bilateral trade, increasing investment opportunities and expanding economic cooperation across the Indo-Pacific region.

The agreement, signed between Export Development Canada (EDC) and the Export-Import Bank of Thailand (EXIM Thailand), establishes a framework for closer collaboration in financing, market intelligence and trade promotion as both countries seek to diversify supply chains and deepen commercial ties.

Trade Between Canada and Thailand Continues to Grow

The partnership comes as Canada and Thailand celebrate 65 years of diplomatic relations.

According to the latest trade figures, Canadian exports to Thailand grew at a cumulative average annual rate of just over 7% between 2020 and 2025, reaching US$1.14 billion in 2025.

Canada’s leading exports to Thailand include:

• Wood pulp
• Fertilizers
• Iron and steel
• Industrial machinery
• Mechanical equipment and parts

The figures highlight Thailand’s growing importance as a destination for Canadian industrial and resource exports, particularly products supporting manufacturing and infrastructure development.

Investment Flows Expand in Both Directions

Investment between the two countries has also continued to strengthen.

Canadian direct investment in Thailand reached US$531 million in 2024, while Thai direct investment in Canada totaled US$692 million, reflecting increasingly diversified commercial relationships beyond merchandise trade.

The new MOU is expected to facilitate additional investment opportunities by encouraging cooperation between financial institutions and supporting businesses entering each other’s markets.

Cooperation Targets High-Growth Industries

Under the agreement, EDC and EXIM Thailand will collaborate on joint initiatives, exchange market intelligence and identify financing opportunities for companies operating across the Asia-Pacific region.

Priority sectors include:

• Agri-food
• Clean technologies
• Energy transition
• Digital industries
• Advanced manufacturing
• Critical minerals

These industries align with both countries’ long-term economic development strategies and growing global demand for sustainable and technology-driven industries.

Support for Canada’s Indo-Pacific Strategy

Canadian officials described Thailand as a strategic partner within Southeast Asia.

“As Canada’s second-largest trading partner in the Association of Southeast Asian Nations (ASEAN), Thailand is a key partner in diversifying and strengthening our engagement across the Indo-Pacific,” said Canada’s Minister of International Trade Maninder Sidhu.

He added that the agreement would further strengthen bilateral economic ties as negotiations toward a Canada-Thailand Free Trade Agreement continue during 2026.

Strengthening Regional Supply Chains

The agreement reflects broader efforts by both governments to build more resilient regional supply chains while expanding trade opportunities throughout the Indo-Pacific.

For sectors including forestry, pulp and paper, advanced manufacturing and clean technology, stronger financial cooperation between export credit agencies may help businesses access new markets and support future cross-border investment.

As Canada continues to diversify export destinations beyond traditional markets, Thailand is expected to play an increasingly important role as a regional manufacturing hub and gateway to the broader ASEAN economy.

Last Updated on 07/07/2026 by Jota Machinery