Canada has signed a trade agreement—the Comprehensive Economic Partnership Agreement (CEPA), with Indonesia to remove tariffs on more than 95% of Canadian exports to its largest Southeast Asian trading partner.

“This is the right deal at the right time with the right partner,” Canadian Prime Minister Mark Carney said, adding that Indonesia is “Canada’s largest export market in Southeast Asia.”

Indonesian President Prabowo Subianto hailed the agreement as a ‘historic moment’ during his visit to Ottawa, noting it is the first bilateral trade deal between Canada and a member of the Association of Southeast Asian Nations (ASEAN).

According to AFP, the pact is being forged amid widespread global economic instability, intensified by the United States’ protectionist trade measures.
The Comprehensive Economic Partnership Agreement enables Canada to bolster its foothold in the Pacific region, aligning with the strategic vision introduced by the former Canadian Prime Minister, Justin Trudeau.

The agreement also includes the removal of over 90% of tariffs on imports from Indonesia, offering a significant boost to the export of garments and leather products to North America. Meanwhile, a defense cooperation pact was also signed to enhance joint efforts in military training, maritime safety, cyber defense, and peacekeeping operations.

The agreement was signed just days after Jakarta concluded a trade pact with the European Union, following nearly ten years of negotiations. Analysts told AFP that securing two trade deals in the span of a week could help Indonesia better withstand economic instability caused by tariffs introduced by U.S. President Donald Trump.

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