Canada signs historic trade agreement with Indonesia

Last week, Prime Minister Mark Carney welcomed the President of Indonesia, Prabowo Subianto, to Ottawa to announce a historic milestone: Canada’s first-ever bilateral trade agreement with an Association of Southeast Asian Nations (ASEAN) country. 

The Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) will open new doors for Canadian workers and businesses. Once in force in 2026, more than 95% of our current exports to Indonesia will see tariffs reduced or eliminated. That means Canadian wheat, potash, wood, soybeans, and many other products will be more competitive in one of the world's fastest-growing markets. 

This agreement is about more than trade. It’s about creating high-quality jobs here at home, strengthening our supply chains, and ensuring Canadian businesses, from clean technology and agri-food to infrastructure and financial services, can compete and win globally. 

Canada and Indonesia also signed agreements to: 

• Boost investment with up to $825 million in new financing to grow opportunities in infrastructure, renewable energy, and advanced manufacturing. 

• Strengthen ties between Canadian and Indonesian businesses through new trade missions. 

• Deepen security cooperation with a new Defence Agreement covering maritime security, cyber defence, and peacekeeping. 

Indonesia is the world’s fourth most populous country and is projected to become a top five global economy by 2050. This partnership ensures Canadian workers and businesses will be part of that growth, while also reinforcing peace and stability in the Indo-Pacific region. 

Canada is taking bold steps to diversify trade and strengthen our place in the world. This agreement with Indonesia is a clear indication that our government is committed to building prosperity and security for Canadians today and for future generations. 

Sincerely,