Prime Minister Carney Announces Historic Canada–Indonesia Trade Agreement

Ottawa, ON – Prime Minister Mark Carney has announced a landmark trade deal with Indonesia, marking Canada’s first-ever bilateral trade agreement with a member of the Association of Southeast Asian Nations (ASEAN).

The Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA) represents a milestone in Canada’s trade diversification efforts at a time of shifting global alliances. Signed during President Prabowo Subianto’s visit to Ottawa, the deal is expected to reshape trade relations between the two countries and expand opportunities for Canadian workers and industries.

What the Agreement Means

Once implemented in 2026, CEPA will eliminate or reduce tariffs on more than 95% of Canadian exports to Indonesia, providing significant advantages for Canadian goods such as wheat, potash, soybeans, and wood products. The agreement will also lower non-tariff barriers, creating a more transparent, predictable environment for Canadian exporters and investors.

Key sectors expected to benefit include clean technology, agri-food, critical minerals, infrastructure, renewable energy, and financial services. By opening new markets and lowering costs, CEPA aims to create high-quality careers in Canada while strengthening supply chain resilience.

Driving Investment and Business Growth

The agreement was accompanied by several investment announcements, including:

• Export Development Canada (EDC)–Indonesia Investment Authority (INA) Partnership: EDC will make up to $825 million in debt financing available to INA to support investment in infrastructure, renewable energy, digital services, and advanced manufacturing.

• Business Council of Canada–Kadin Agreement: A new partnership between Canada’s business council and Indonesia’s Chamber of Commerce and Industry to expand trade missions and strengthen bilateral business ties.

These initiatives aim to foster deeper commercial links between Canada and Indonesia, positioning Canadian businesses to access one of the world’s fastest-growing markets. Indonesia’s economy is projected to rank among the top five globally by 2050.

Strengthening Security Ties

Beyond trade, Canada and Indonesia signed a new Defence Cooperation Agreement to expand collaboration on maritime security, military training, cyber defence, and peacekeeping. The arrangement builds on a memorandum signed last month and reinforces Canada’s broader Indo-Pacific Strategy, reflecting a joint commitment to regional peace and stability.

A Strategic Milestone for Canada

Prime Minister Carney called the deal a “game-changer” for Canadian workers and businesses.

“Canada and Indonesia are unlocking major new economic opportunities together. Our new trade agreement is a game-changer for our workers and businesses, opening new markets and driving more investment between our growing economies. In the face of a shifting global landscape, Canada’s new government is diversifying and strengthening our partnerships to create greater prosperity, security, and high-quality career opportunities for Canadian workers,” said Carney.

The CEPA agreement positions Canada to expand its role in the Indo-Pacific, deepen cooperation with ASEAN partners, and secure new avenues of growth in an increasingly complex global economy.

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