- Canada, Indonesia sign first bilateral ASEAN trade pact, boosting exports and investment.
- CEPA removes tariffs on 95% Canadian exports, enhancing competitiveness in Indonesia.
- New partnerships with INA, Kadin expand opportunities in infrastructure, energy, and digital sectors.
Canadian Prime Minister Mark Carney unveiled the new Comprehensive Economic Partnership Agreement (CEPA) between Canada and Indonesia during Indonesian President Prabowo Subianto's visit to Ottawa.
This marks Canada’s initial bilateral trade pact with a member of the Association of Southeast Asian Nations (ASEAN). The accord will remove or lessen tariff and non-tariff obstacles, foster a more transparent and predictable landscape for trade and investment, and provide new prospects for Canadian workers and industries in areas such as clean technology, agri-food, infrastructure, critical minerals, and financial services, according to an official statement from Carney's office.
When the CEPA is completely enacted, more than 95 percent of existing Canadian exports to Indonesia will see either reduced tariffs or complete removal, significantly enhancing the competitiveness of Canadian products such as wheat, potash, wood, and soybeans in Indonesia.
According to the release, CEPA will take effect in 2026, offering consumers and businesses in both nations enhanced options and reduced expenses, while providing Canadian workers with opportunities for quality jobs and strengthening supply chains for better resilience.
To enhance investment in each other’s economies, Carney and Subianto endorsed a new partnership agreement for market leadership between Export Development Canada (EDC) and the Indonesia Investment Authority (INA).
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Under this arrangement, EDC will provide debt financing of up to $825 million to the INA. EDC and the INA will partner to draw investments and create new business prospects for Canadian exporters and investors in key sectors throughout Indonesia, such as infrastructure, digital services, renewable energy, and advanced manufacturing.
A pact was also established between the Business Council of Canada and Kadin, Indonesia’s Chamber of Commerce and Industry, to enhance trade and investment relations.
“Canada and Indonesia are unlocking major new economic opportunities together. Our new trade agreement is a game-changer for our workers and businesses, opening new markets and driving more investment between our growing economies. In the face of a shifting global landscape, Canada’s new government is diversifying and strengthening our partnerships to create greater prosperity, security, and high-quality career opportunities for Canadian workers,” Carney said.