Indonesia expects to finalize a trade agreement with Canada later this year, though an official signing date has not yet been determined, a senior official said on Monday. The two countries substantially concluded negotiations for their bilateral Comprehensive Economic Partnership Agreement (CEPA) in December. Under the pact, Canada will eliminate a large portion of tariffs on Indonesian products, while Jakarta will extend similar tariff reductions to Canadian exports.
The Southeast Asian economic powerhouse has accelerated its market diversification efforts, particularly in response to the recent wave of U.S. country-specific tariff hikes affecting global trade.
Jakarta finalized a trade in goods agreement with Peru last month and is now preparing to pursue a similar pact with Canada in 2025. According to a director-general at the Trade Ministry, the upcoming agreement with Ottawa will be broader in scope, as it will also include provisions on investment facilitation. He added that the signing is still awaiting the right timing, as it is expected to be witnessed by the presidents of both countries.
Under the agreement, Indonesia will benefit from the liberalization of up to 90.5% of tariffs on goods entering the Canadian market, with the country’s exports to Canada reaching USD 1.4 billion in 2024.
Trade between Indonesia and Canada reached nearly USD 3.6 billion in 2024, with Indonesia posting a deficit of USD 693.2 million. From January to June 2025, bilateral trade rose to almost USD 2.3 billion, up 27% from around USD 1.8 billion in the same period a year earlier. During the first half of 2025, Indonesia’s trade deficit with Canada widened to USD 497.8 million from USD 398.1 million, ministry data showed.
(Source: Jakarta Globe)
