Meeting Canadian Trade Minister, Minister Lutfi Discusses Strengthening Cooperation

Minister of Trade, M. Lutfi. (Photo: Doc. Ministry of Trade)

JAKARTA - Indonesia invites Canada to further strengthen cooperation with both Indonesia and ASEAN. In particular, to ensure that the global economic recovery after the COVID-19 pandemic can be felt by ASEAN countries and Canada.

The Minister of Trade of the Republic of Indonesia Muhammad Lutfi hopes to cooperate with Canada and jointly promote economic recovery in the region in the 70 years of the cooperative relationship between Indonesia and Canada.

This was conveyed by Trade Minister Lutfi in a bilateral meeting with Canada's Minister of Small Business, Export Promotion and International Trade (Minister of Small Business, Export Promotion and International Trade), Mary Ng, Saturday, May 21.

The bilateral meeting was held on the sidelines of the APEC Trade Ministers Meeting (APEC MRT) in Bangkok, Thailand from 21 to 22 May 2022.

"We hope that Indonesia and ASEAN can establish close cooperation with Canada to ensure a rapid economic recovery in the region," said Trade Minister Lutfi, in a written statement, Monday, May 23.

The trade value between Indonesia and Canada in the period January to March 2022 was recorded at US$942.66 million, an increase of 32.54 percent compared to the same period in 2021 which was recorded at US$711.25 million. In 2021, Indonesia's total trade with Canada will be recorded at US$3.1 billion.

Indonesia's leading export products to Canada are natural rubber, sports uniforms, motorcycle parts, pneumatic tires, and footwear. Meanwhile, Indonesia's leading imported products from Canada are wheat, fertilizers, wood pulp, soybeans, and iron ore.

Four keys to support regional economic recovery

Trade Minister Lutfi said there are four things that are key and needed to support regional economic recovery. First, digitization is carried out because the digital economy plays a very important role in carrying out recovery actions and anticipating future obstacles.

Second, the health sector must be strengthened so that it can cope with unforeseen crises.

"Third, investment that holds the principle of a level playing field for developing and developed countries," he said.

Finally, inclusiveness and sustainability must be realized so that the sustainable development goals can be achieved immediately and shared prosperity in 2030 can be achieved.

Apart from discussing economic recovery, another issue discussed at the meeting between Minister of Trade Lutfi and Minister Ng was the latest developments regarding the Negotiations of the Comprehensive Economic Agreement between Indonesia and Canada (ICA–CEPA).

Trade Minister Lutfi appreciated the first negotiations on March 14 to 19, 2022, which succeeded in finding common ground between the two countries' views on trade policies. The second round of negotiations is scheduled for the second half of 2022.

The event also discussed the latest developments related to the preparation of the Free Trade Agreement Negotiations between ASEAN and Canada (ACAFTA). The ASEAN and Canada negotiating teams have completed the Terms of Reference for the Trade Negotiations Committee, the 2022 Work Plan, and the ACAFTA Negotiation Structure. These three documents are the documents that will form the basis for the upcoming ACAFTA negotiations.

"Indonesia would like to express its deepest appreciation to Canada for showing flexibility in the discussion regarding these documents amidst existing differences and sensitive issues," said Trade Minister Lutfi.

In addition, said Lutfi, APEC's strategy to support Small and Medium Enterprises (SMEs) was also discussed. Trade Minister Lutfi conveyed to Minister Ng that Indonesia believes that the main priority that has been taken by APEC to support SMEs is ensuring SMEs access to international markets and global value chains as well as inclusive development to build digitalization.

In addition, Lutfi also said that Indonesia appreciated Canada's support for the Indonesian Presidency at the G20. "We hope that all G20 member countries, including Canada, can bring the same spirit to the success of the Indonesian Presidency," said Trade Minister Lutfi.

This was welcomed by the Canadian Trade Minister by congratulating the successful implementation of the 2022 First Meeting of the Trade, Investment and Industry Working Group (TIIWG1) in Solo, Central Java.

"Congratulations to Indonesia for holding TIIWG1 which went well in Solo. Canada will continue to support the G20 to reach an agreement under the Indonesian Presidency," said Minister Ng.

During the meeting, preparations for the 12th WTO Ministerial Meeting were also discussed. The Canadian Minister of Trade said that the current focus of Canadian trade cooperation is related to standards, the environment, and labor.

"We see high product standards as good service for consumers. Good product standards here are not only seen in terms of the quality of the goods themselves, but we look at the whole production process that involves skilled workers to their contribution to the environment, "explained Minister Ng.