Canada, Indonesia sign key trade agreement

SINGAPORE (ICIS)–Indonesia and Canada have signed a Comprehensive Economic Partnership Agreement (CEPA) in Jakarta after negotiations that lasted 2.5 years.

The free trade pact was signed on 2 December in Jakarta is expected to take effect in 2026, according to Indonesia’s Ministry of Trade.

“Through this Indonesia-Canada CEPA, market access for Indonesian products will be wider to the North American region, especially Canada,” Indonesian trade minister Budi Santoso said.

In addition to trade in goods, the agreement will also provide preferential treatment for Indonesian service providers, including the business services, telecommunications, construction, tourism, and transportation sectors, he added.

Indonesia, which is southeast Asia’s biggest economy, is Canada’s 22nd largest merchandise trading partner with two-way merchandise trade totalling $5.1 billion in 2023, data from the Canadian government showed.

The southeast Asian country is Canada’s largest export market in the region, and a key destination for Canadian agricultural products, manufactured goods, and natural resources, it added.

In January–September 2024, the total value of Indonesia-Canada trade was $2.6 billion, up by 4% year on year, according to Indonesia’s trade ministry.