Indonesia-Canada Agree On Trade Agreement, Will Valid From 2026

JAKARTA - Indonesia and Canada have just signed a Joint Statement on the Comprehensive Economic Partnership Agreement (CEPA). The trade agreement will be implemented in 2026.

The Minister of Trade (Mendag), Budi Santoso explained that with the signing, the two countries had agreed with the points of cooperation within the IC-CEPA. Then, he said, then wait for the legality stage such as ratification of agreements in parliament, to implementation.

"After the struggle of the two Negotiations Team for more than 2.5 years, Indonesia has finally succeeded in having a comprehensive trade agreement with Canada. Through this Indonesia-Canada CEPA, the market access for Indonesian products will be wider to North America, especially Canada," said Budi at the Mulia Senayan Hotel, Jakarta, Monday, December 2.

Budi said that with this IC-CEPA, Indonesia will get some convenience for exports, as well as Canada. Through Indonesia-Canada CEPA, he continued, Indonesia received a 90.5 percent liberalization of Canadian market access to tariff posts with a trade value of 1.4 billion US dollars.

"There are several Indonesian priority products that can access the market from Canada, such as textiles, paper and its derivatives, wood and its derivatives, processed foods, swallow's nest, and palm oil," he said.

Meanwhile, Canadian Minister for Export, International Trade and Economic Development, Mary Ng, explained that with the signing of the joint statement, Indonesia and Canada only had to process legality documents before the implementation of the IC-CEPA.

Furthermore, Mary revealed that the target for IC-CEPA can be implemented in 2026.

We just signed a joint statement. And we have to go through a process in Canadian parliament to implement this. And the 2026 that we are targeting can be implemented," said Mary.

With this IC-CEPA, continued Mary, there are many opportunities for business cooperation that can be carried out by Indonesia and Canada. Therefore, he asked investors or business people, especially in Canada, to make good use of this IC-CEPA.

"Now is the right time for Canadian businessmen and investors to expand their exploration to the largest economy in Southeast Asia. On the other hand, it is now also the right time for Indonesian businessmen and investors who want to expand their wings to the North American market," said Mary.