Indonesia, Canada sign Comprehensive Economic Partnership Agreement

The agreement will take effect in 2026.

Indonesia will witness liberalisation of 90.5 per cent of the total tariffs for goods entering Canada with a trade value of $1.4 billion.

Indonesian trade minister Budi Santoso and Mary Ng, Canadian minister of export promotion, international trade and economic development signed the agreement.

"Together, we advance sustainable critical mineral management, supporting Indonesia's net zero target by 2060, and fostering Canadian investment while driving green growth in both nations," Santoso told a joint press conference.

Indonesia has rich deposits of tin, copper and bauxite, among others, and is the world's largest source of nickel ore.

Garments and footwear are part of Indonesia’s main exports to Canada. In 2023, Indonesia was Canada’s 22nd-largest trading partner worldwide and third largest among Southeast Asian countries.

Two-way merchandise trade between both sides was valued at $5.1 billion in 2023, and Canadian merchandise exports to Indonesia were valued at $2.3 billion, making Indonesia Canada’s largest export market that year among ASEAN members.

Fibre2Fashion News Desk (DS)