Indonesia Backs Faster Conclusion of ASEAN-Canada FTA

RRI.CO.ID, Jakarta - Indonesia has urged ASEAN and Canada to maintain momentum and accelerate negotiations on the ASEAN-Canada Free Trade Agreement (ACAFTA) as the talks move closer to a substantial conclusion.

Deputy Trade Minister Dyah Roro Esti Widya Putri made the call during the 15th ASEAN Economic Ministers (AEM)-Canada Consultative Meeting in Pasay City, the Philippines, on Tuesday.

According to Roro, the progress achieved in the negotiations has brought ACAFTA closer to a substantial conclusion. The announcement of a substantial conclusion could help accelerate efforts to resolve the remaining issues.

“ This achievement demonstrates tangible progress in the ACAFTA negotiations. However, there is still work to be done, particularly regarding the text of the agreement, market access, PSR and cross-sectoral issues. Therefore, a pragmatic approach, commitment and flexibility from all parties are needed to accelerate the conclusion of the negotiations,” Roro said, as quoted on the Ministry of Trade's official website on Wednesday.

The ACAFTA Trade Negotiating Committee (TNC) is scheduled to meet again in October 2026, with the remaining work expected to be completed in early November ahead of the 49th ASEAN Summit.

Roro also expressed appreciation for the contribution of the Canada-ASEAN Business Council (CABC) in strengthening private-sector engagement in the ACAFTA process, as well as Canada's support through the ASEAN-Canada Plan of Action Trust Fund for capacity-building programs in ASEAN member states.

The CABC highlighted several business priorities, including addressing trade and investment barriers, improving agricultural market access, strengthening the digital economy and enhancing ASEAN's energy security.

Economic cooperation between ASEAN and Canada continues to expand through the implementation of the ASEAN-Canada Joint Declaration on Trade and Investment (JDTI) 2026-2030.

At the 15th AEM-Canada meeting, ASEAN and Canada noted progress in implementing the declaration across trade and investment, agriculture and food security, energy resilience and transition, digital transformation and private-sector engagement.

Amid geopolitical uncertainty and disruptions to global supply chains, Roro underscored the importance of strengthening economic resilience and deepening cooperation in trade, investment and supply chains between ASEAN and Canada.

Canadian Minister of International Trade Maninder Sidhu reiterated Canada's support for accelerating the completion of ACAFTA and maintaining momentum toward a substantial conclusion in 2026.

ASEAN-Canada economic ties continued to strengthen in 2025. Two-way merchandise trade reached CAD 52.4 billion, up 23.6 percent from 2024, while Canadian direct investment in ASEAN stood at CAD 51.5 billion at year-end, up from CAD 47.8 billion in 2024.

Bilateral trade relations between Indonesia and Canada also continued to grow. Indonesia's non-oil and gas exports to Canada reached USD 1.70 billion in 2025, with furniture, toys, paper products and other manufactured goods among the products with export potential.

The strengthening of Indonesia-Canada trade relations is expected to go hand in hand with the completion of ACAFTA. The agreement is expected to expand market access and trade and investment opportunities, provide greater certainty for businesses, and strengthen ASEAN-Canada economic integration. ***