Canada-Indonesia Comprehensive Economic Partnership Agreement – Background information

The Government of Canada is committed to expanding trade and investment with large, fast-growing markets, such as Indonesia, to help Canadians succeed globally. Indonesia is a G20 country and Southeast Asia's largest economy. With a population of 279 million and GDP of close to $1.9 trillion in 2023, the Indonesian market holds significant potential for Canadian traders, investors, and service providers.

Canada and Indonesia enjoy strong commercial relations. Indonesia is Canada's 22nd largest merchandise trading partner with two-way merchandise trade totalling $5.1 billion in 2023. Last year, Canadian merchandise exports and imports were valued at $2.3 billion and $2.8 billion, respectively. Indonesia is Canada's largest export market in Southeast Asia, and a key destination for Canadian agricultural products, manufactured goods, and natural resources. In 2023, Canadian services exports to Indonesia totalled $284 million, while Canadian services imports from Indonesia reached $181 million. Canada also has significant investment interests in Indonesia, with Canadian direct investment valued at $6.7 billion in 2023, making it the second largest destination for known Canadian direct investment in the region.

The Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) will help unlock the potential of this dynamic, rapidly growing market for Canadians while upholding labour rights and promoting environmental sustainability.

The comprehensive trade agreement between Canada and Indonesia will facilitate new opportunities for Canadian business by:

• eliminating or reducing tariff and non-tariff barriers
• enhancing access to Southeast Asian supply chains
• establishing a more transparent and predictable environment for trade and investment

The Government of Canada is committed to ensuring that the Canada-Indonesia CEPA reflects the interests of Canadians, and that the benefits of liberalized trade are widely shared, including with:

• the middle class
• small- and medium-sized enterprises
• women
• Indigenous Peoples

Status of the negotiations

On June 20, 2021, Canada and Indonesia launched negotiations towards a CEPA. Respecting the transparency requirements under the Policy on Tabling Treaties in Parliament, the Government tabled its Notice of Intent to enter into CEPA negotiations with Indonesia in the House of Commons on June 21, 2021, and tabled its negotiating objectives on November 24, 2021.

Ten rounds of negotiations have taken place: March 14-18, 2022, August 15-19, 2022, October 31-November 4, 2022, February 20-26, 2023, May 29-June 2, 2023, October 23-27, 2023, March 4-8, 2024, June 24-28, 2024, September 23-27, 2024, and November 4-8, 2024.

On November 15, 2024, the Prime Minister, Justin Trudeau and the President of Indonesia, Prabowo Subianto, issued a joint statement to welcome the substantive conclusion of negotiations for a Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) with the objective of bringing CEPA into force as soon as possible.