EU and Canada Sign CEPAs With Indonesia

Canada and Indonesia signed a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa that will eliminate or cut tariffs on more than 95% of Canadian exports to Indonesia and reduce over 90% of tariffs on many Indonesian imports, and includes an investment partnership offering up to $825 million to spur joint ventures in renewables, digital services, infrastructure and manufacturing. The Ottawa pact also includes a parallel defence‑cooperation agreement covering training, maritime security, cyber defence and peacekeeping, and is presented by officials as part of an Indo‑Pacific diversification strategy. Separately, the EU and Indonesia concluded a long‑running CEPA that will largely remove duties on EU goods, open opportunities for agri‑food, automotive and electric‑vehicle investment, and includes a protocol on palm oil establishing a sustainability dialogue and quota‑based zero tariffs for specified volumes. The EU deal is expected to secure more predictable access to critical raw materials for Europe’s clean‑tech and steel industries and to protect EU geographic food indications, while Indonesia gains expanded market access for palm oil, rubber, textiles, footwear and other labor‑intensive exports. Observers warned both pacts will need ratification and implementation steps and raise challenges for small businesses and sustainability compliance (notably Indonesia’s ability to meet EU deforestation rules for palm oil). Both agreements remain subject to parliamentary approvals and further implementation before taking effect.