Indonesia has successfully wrapped up a Comprehensive Economic Partnership Agreement with Canada — their first free trade pact with a North American country.
Gateway to North America
As Southeast Asia’s largest economy, Indonesia anticipates this agreement will open trading corridors to the wider region, including the United States. It sets an unprecedented milestone expected to come into force by 2026, following parliamentary consent from both nations. Legal fine-tuning should reach completion by mid-2025.
Trade Negotiations
Trade Minister Budi Santoso and Canada’s Minister for Export Promotion, International Trade and Economic Development, Mary Ng, finalised the discussions in Jakarta on Monday. The talks, which spanned three years, have led to the elimination of 90.5 percent of Canadian tariff lines for Indonesian goods.
Prospective exporters in Indonesia stand to benefit significantly, especially in sectors like textiles, processed foods, timber, paper products, bird’s nests, and palm oil.
For insights into how regional trade policies are evolving, such as the IEU-CEPA stalemate, read on: Delayed deforestation rule unlikely to break IEU-CEPA deadlock.
Economic Expectations
The agreement is projected to enhance trade between these two G20 economies by a notable US$1.4 billion. Surely, it heralds growth prospects for both markets, enhancing China and Canada’s economic landscapes step by step.
A Weekly Digest
Every Monday, “Prospects” delivers pivotal interviews and deep dives into the region’s most critical business topics. It’s the quintessential choice for staying informed on Indonesia’s swiftly transforming business terrain.
For further updates, make sure to confirm your subscription via the email link in our newsletter welcome email.
Embrace our newsletter for exclusive insights and stay ahead in this dynamic landscape.
Uncover more about the subject by visiting our View More Newsletter section for further enriching content.
