Indonesia Signs Strategic Trade Deals with EU Canada Boosting Market Access

Indonesia has recently finalized two major Comprehensive Economic Partnership Agreements (CEPA) with the European Union and Canada, signaling a significant boost in its global trade relations. The Indonesia-European Union CEPA, set to take effect in 2027, will eliminate tariffs on over 98% of goods traded between the two economies, potentially increasing Indonesia's GDP by up to $2.8 billion annually and expanding access to the EU market for key exports like palm oil, textiles, and critical minerals. Meanwhile, the Indonesia-Canada CEPA includes a critical minerals dialogue focused on expanding cooperation in lithium and electric vehicle battery production, aiming to develop an integrated EV ecosystem. These agreements are expected to enhance Indonesia's export competitiveness, with preferential tariff treatment for thousands of Indonesian products in Canadian markets and increased market access in North America and Europe. Trade officials emphasize that the deals strengthen Indonesia's bargaining position and open opportunities for investment and industrialization, particularly in strategic sectors such as automotive, electronics, and processed foods. Canada anticipates that the CEPA will substantially increase bilateral trade, especially in agriculture, energy, and timber, promoting a diversification of Canadian exports to Southeast Asia.