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RI seals trade pact with Canada, possibly improving access to US
Southeast Asia’s biggest economy expects the agreement to pave the way for greater access to the region, including to the United States.
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Trade Minister Budi Santoso (left) and Canadian Minister for Export Promotion, International Trade and Economic Development Mary Ng officially conclude negotiations of the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA) in Jakarta on Dec. 2, 2024. (Courtesy of/Trade Ministry)
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ndonesia has finalized a Comprehensive Economic Partnership Agreement with Canada (I-CA CEPA), marking Jakarta’s first free trade deal with a North American country.
Southeast Asia’s biggest economy expects the agreement to pave the way for greater access to the region, including to the United States.
The deal is set to enter into force in 2026 pending legislative approval in both countries, while legal scrubbing is anticipated to conclude by mid-2025.
Trade Minister Budi Santoso and Canadian Minister for Export Promotion, International Trade and Economic Development Mary Ng officially concluded negotiations in Jakarta on Monday, three years after talks began.
The deal gives Indonesian exporters greater access to the Canadian market, with 90.5 percent of tariff lines eliminated.
Read also: Delayed deforestation rule unlikely to break IEU-CEPA deadlock
The agreement is poised to increase trade between the two Group of 20 nations by US$1.4 billion and provide a boost for Indonesian exports in sectors like textiles, processed foods, paper products, timber and bird’s nests, as well as palm oil.
