Canada unveils first-ever bilateral trade deal with ASEAN nation

In this new era, the partners will look not only to the strength of Canada's values but also to the power of its capabilities, said the Canadian Prime Minister's Office in a statement, adding that Ottawa is strengthening its foundations at home, diversifying partnerships abroad and forging new connections to advance its interests.

"To that end, the Prime Minister, Mark Carney, welcomed the President of Indonesia, Prabowo Subianto, to Ottawa today to announce the new Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA)," it said.

The deal will remove or reduce tariff and non-tariff barriers, establish a more transparent and predictable framework for trade and investment, and create new opportunities for Canadian workers and industries in sectors such as clean technology, agri-food, infrastructure, critical minerals and financial services, it added.

Once fully implemented, more than 95 per cent of Canada's current exports to Indonesia will face reduced or eliminated tariffs, making products like wheat, potash, wood, and soybeans far more competitive, the office highlighted.

It noted that CEPA will take effect in 2026 and provide consumers and businesses in both countries with greater choice and lower costs, strengthen supply chains, and open the door to high-quality jobs for Canadian workers.

To boost mutual investment, Carney and Subianto announced a new Market Leader Partnership Agreement between Export Development Canada (EDC) and the Indonesia Investment Authority (INA), it said.

Through the partnership, the EDC will provide up to US$825 million in debt financing to the INA, with both organisations working together to attract investment and create new opportunities for Canadian exporters and investors in key sectors across Indonesia, including infrastructure, digital services, renewable energy and advanced manufacturing, the statement further highlighted.

Carney and Subianto also welcomed the signing of an agreement between the Business Council of Canada and Kadin, Indonesia's Chamber of Commerce and Industry, aimed at strengthening trade and investment ties between the two countries, it stated, noting that the agreement will foster a strong network of business alliances through bilateral trade missions.

With Indonesia projected to become one of the world's top five economies by 2050, the partnerships will unleash notable opportunities for Canadian workers, businesses and investors, the prime minister's office underscored.

"In a more divided and dangerous world, economic growth must be bolstered by shared defence and security.

"To that end, Canada and Indonesia also signed a new Defence Cooperation Agreement, building on the Military Cooperation Memorandum of Understanding signed last month," it said.

Combined, the agreements will strengthen cooperation in military training and education, maritime security, cyber defence, and peacekeeping, it said.

"It is a critical step in Canada's Indo-Pacific Strategy and a strong signal to the world that Canada and Indonesia are committed to peace and stability in the region," it added.

-- BERNAMA