Indonesia and Canada have signed a Comprehensive Economic Partnership Agreement (CEPA) to strengthen economic cooperation. The agreement, which was concluded after three years of negotiations, was signed in Jakarta by the trade ministers of both countries and is scheduled to come into force in 2026.
The CEPA includes tariff liberalization on 90.5% of Indonesian exports to Canada. The arrangement covers a trade volume of USD 1.4 billion. Indonesia's Ministry of Trade reported that the total trade value between Indonesia and Canada grew by 11.24% from 2019 to 2023, reaching USD 3.4 billion in 2023. For the period from January to September 2024, trade between the two countries rose by 4.07% y-o-y, amounting to USD 2.6 billion.
Indonesia’s Trade Minister Budi Santoso emphasized the importance of the agreement as Canada supports Indonesia’s plan to develop its critical minerals sector. The minister stated that this sector plays a key role in sustainable economic growth and supports the country's 2060 net zero emissions target. Indonesia, which stands out with its resources such as nickel ore, tin, copper, and bauxite, is expected to benefit strategically from CEPA.
Canada's Minister of International Trade Mary Ng said that the agreement will bring predictability and stability to the trade relationship between the two countries.
Ng also touched on US President-elect Donald Trump's plan to impose a 25% tariff on Canadian goods, stating that Canada is committed to cooperating with the US to manage trade relations. He added that CEPA is an indication of Canada's intention to diversify and strengthen its global trade partnerships.
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