Canada and Indonesia signed a bi-lateral agreement that further advances trade between the two countries.
In a news release, the federal government says with Indonesia being Southeast Asia’s largest economy with a GDP of close to $1.9-trillion and a population of 279 million, it holds significant potential for Canadian producers, investors, traders, and service providers. For example, two-way merchandise totalled $5.1 billion in 2023. Last year, Canadian direct investment was valued at $6.7 billion.
The signing of the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) is the culmination of ten rounds of negotiations that began in 2021. The deal enhances Canada’s access to the Southeast Asian supply chains, reduces trade barriers, and establishes a more transparent and predictable environment for trade and investment.
Cereals Canada welcomed the deal, noting “Indonesia is Canada’s second largest market for non-durum wheat” and durum wheat, importing 2.4 million tonnes of Canadian non-durum wheat, valued at $1.1 billion CDN. They also welcome the inclusion of “a broad tariff elimination for Canadian agricultural exports, including cereals, and sets guidelines for sanitary and phytosanitary regulations and other technical rules of trade. ” According to Cereals Canada, the agreement will take effect in 2026.
“The conclusion of the CEPA negotiations between Canada and Indonesia marks a significant milestone for Canada’s agriculture and agri-food sector,” said Dean Dias, chief executive officer at Cereals Canada. “We applaud the government’s commitment to expanding market access and creating new opportunities for Canadian grain farmers and exporters.”
The Canadian Cattle Association is another group that welcomed the agreement. They appreciated “the CEPA’s provisions on import licensing, which will provide more transparency and predictability for the Canadian beef sector.” The CCA also says the deal provides another market for producers to export high-quality Canadian beef as demand for it continues to grow in the Indo-Pacific region.
The CCA was part of a trade delegation to Indonesia and was present for the signing of the deal.