RRI.CO.ID, Jakarta - Trade Minister Budi Santoso said the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA‑CEPA) will strengthen market access for Indonesian products in Canada and support the development of distribution channels in North America.

Minister Budi emphasized that the agreement is vital for bolstering national export performance amid rising global geopolitical uncertainty. “Therefore, Indonesia needs to continue expanding market access through trade agreements to reduce barriers and strengthen competitiveness,” he said in an official statement on Thursday, May 21, 2026.

He noted that Canada holds a strategic position as a gateway for Indonesian products into the North American market, which has a population of around 500 million.

The ICA‑CEPA reduces trade barriers through tariff preferences and creates opportunities to increase exports of Indonesian value‑added products. “It also expands opportunities in the services and investment sectors, while serving as an alternative export distribution channel for Indonesia amid global tariff dynamics,” Minister Budi added.

Trade between Indonesia and Canada has shown a positive trend in recent years. In 2025, total trade reached USD 4.36 billion, with Indonesia’s exports rising to USD 1.69 billion. Meanwhile, trade in services recorded a surplus for Indonesia of USD 102.92 million in 2024.

Negotiations for the ICA‑CEPA spanned 10 rounds over two years and eight months, culminating in the signing of the agreement by both trade ministers in Ottawa in September 2025.

Through the agreement, Indonesia secured tariff elimination on 90.55 percent of Canada’s tariff lines, benefiting products such as textiles, footwear, processed foods, seafood, and wood products. Canada, in turn, gained tariff elimination on 85.54 percent of Indonesia’s tariff lines, covering wheat, fertilizers, industrial raw materials, and energy‑related products.

In the services sector, Indonesia gained market access to Canada and professional mobility, benefiting engineers, architects, healthcare professionals, and IT specialists.

Indonesia and Canada also agreed on digital trade cooperation, including recognition of electronic documents and personal data protection, which is expected to strengthen the digital economy in both countries.

The government hopes the ICA‑CEPA will encourage Canadian investment in potential sectors. Preparations include regulatory harmonization and strengthening SME competitiveness ahead of implementation.

“The government hopes that the ICA‑CEPA will soon provide tangible benefits for national businesses, including SMEs, and strengthen Indonesia’s trade resilience in the future,” Minister Budi said.

House Commission VI lawmaker Adisatrya supports the agreement, stressing that diversifying export markets is crucial to reducing dependence on traditional trading partners. (Gusti Panji)