Canada signs first-ever trade deal with ASEAN country

Canada and Indonesia have signed a new trade deal that the federal government is calling a “game-changer” for Canadian workers and businesses.

Prime Minister Mark Carney announced that the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) will come into force in 2026. It is Canada’s first bilateral trade deal with a member of the Association of Southeast Asian Nations.

The agreement will cut or eliminate tariffs on more than 95 per cent of Canadian exports to Indonesia, covering goods such as wheat, potash, wood and soybeans. It also promises new opportunities in sectors including clean technology, agri-food, infrastructure, critical minerals and financial services.

Carney said the deal will strengthen supply chains, lower costs for consumers and create high-quality jobs.

“Canada and Indonesia are unlocking major new economic opportunities together. Our new trade agreement is a game-changer for our workers and businesses, opening new markets and driving more investment between our growing economies,” Carney said in a statement.