Canada, Indonesia Sign Historic CEPA as Canada’s First Bilateral Deal With ASEAN Country
SDG 8: Decent Work & Economic Growth | SDG 9: Industry, Innovation & Infrastructure
Institutions: Ministry of Commerce & Industry | Ministry of External Affairs
Prime Minister Mark Carney and President Prabowo Subianto formally announced the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, marking Canada’s first bilateral deal with an ASEAN country. The CEPA will eliminate or reduce tariffs and non-tariff barriers, making over 95% of current Canadian exports to Indonesia eligible for preferential treatment.
In parallel, a Market Leader Partnership was unveiled: Export Development Canada (EDC) will provide debt financing up to USD 825 million to the Indonesia Investment Authority (INA) to support joint infrastructure, renewable energy, digital, and advanced manufacturing projects. The CEPA is expected to take effect in 2026.
This deal diversifies Canada’s trade away from traditional partners, strengthens its economic presence in Southeast Asia, and boosts market access for Canadian industries in sectors like clean tech, agriculture, infrastructure, and critical minerals. For Indonesia, the agreement promises enhanced export access, capital inflow, and opportunities for deeper industrial linkages.
Relevant Question for Policy Stakeholders:
How should India recalibrate its Act East Policy and India–ASEAN trade strategy to remain competitive in Indonesia’s market, as Canada and other partners deepen bilateral agreements?
Follow the full announcement here: PMO Canada – News Release