Indonesia, Canada Sign Comprehensive Economic Partnership Agreement

Indonesia has received support from Canada for its membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which aims to enhance Jakarta's access to a group accounting for 13% of the global economy. Concurrently, both nations have signed a Comprehensive Economic Partnership Agreement (CEPA), set to take effect in 2026, which will liberalize 90.5% of tariffs on goods entering Canada, potentially balancing Indonesia's trade deficit with Ottawa. The CEPA is expected to bolster Indonesia's critical minerals sector, essential for sustainable growth and carbon neutrality goals by 2060. Trade between the two countries reached $3.4 billion last year, with Canada exporting agricultural products while Indonesia exports machinery and textiles. Canadian Trade Minister Mary Ng emphasized the mutual benefits of the CEPA, supporting Indonesia's key mineral development and sustainable initiatives. The agreements mark a significant step in strengthening economic ties between the two G20 members.