Canadian PM announces new trade agreement with Indonesia

This is Canada’s first-ever bilateral trade agreement with a member of the association of Southeast Asian Nations (ASEAN).

The agreement will eliminate or reduce tariff and non-tariff barriers, create a more transparent and predictable environment for trade and investment, and open new opportunities for Canadian workers and industries in sectors like clean technology, agri-food, infrastructure, critical minerals and financial services, an official statement from Carney’s office said.

Once the CEPA is fully implemented, over 95 per cent of current Canadian exports to Indonesia will have tariffs either reduced or fully eliminated, making Canadian exports like wheat, potash, wood and soybeans far more competitive in Indonesia.

CEPA will come into force in 2026, giving consumers and businesses in both countries greater choices and lower costs, while empowering Canadian workers with opportunities for high-quality careers and making our supply chains stronger and more resilient, the release noted.

To further drive investment in each other’s economies, Carney and Subianto welcomed a new market leader partnership agreement between Export Development Canada (EDC) and the Indonesia Investment Authority (INA).

Under this, EDC will make debt financing of up to $825 million available to the INA. EDC and the INA will work in collaboration to attract investment and generate new business opportunities for Canadian exporters and investors in priority sectors across Indonesia, including infrastructure, digital services, renewable energy and advanced manufacturing.

An agreement was also signed between the Business Council of Canada and Kadin, Indonesia’s Chamber of Commerce and Industry, to strengthen trade and investment ties.

“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.

ALCHEMPro News Desk (DS)