Indonesia Finalizes First Comprehensive Economic Partnership Agreement in North America with Canada
Jakarta, The Gulf Observer: Indonesia’s Ministry of Trade has officially announced the conclusion of negotiations for the Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) — marking a historic milestone as Indonesia’s first CEPA with a North American country.
“We have finalized the first CEPA in North America with Canada. Through fast-moving negotiations, it was wrapped in just two years,” stated Djatmiko Bris Witjaksono, Director General of International Trade Negotiations at the Ministry of Trade, during a press briefing on Monday.
The ICA-CEPA negotiations were concluded in December 2024, and the agreement is now slated to be formally signed in September or October 2025. A Joint Statement on the Completion of the ICA-CEPA has already been signed by Indonesian Minister of Trade Budi Santoso and Canadian Minister of Export Promotion, International Trade, and Economic Development Mary Ng.
“This CEPA will not only improve market access for Indonesian products in the North American region, but also mark a strategic step in expanding our global trade footprint,” Witjaksono emphasized.
The agreement promises to deliver significant benefits across multiple sectors:
- Trade in Goods: Indonesian exporters will gain broader access to the Canadian market, removing barriers that have long hindered trade growth between the two countries.
- Trade in Services: Indonesian service providers in areas such as business services, telecommunications, construction, tourism, and transportation will enjoy preferential treatment, enhancing their competitiveness in the Canadian market.
- Investment Facilitation: The agreement will create an enabling environment for increased investment in sectors such as manufacturing, agriculture, fisheries, forestry, mining and quarrying, and energy infrastructure.
- Broader Commitments: ICA-CEPA also encompasses provisions related to intellectual property rights, good regulatory practices, e-commerce, competition policy, support for SMEs, women’s economic empowerment, environmental protection, and employment.
The ICA-CEPA adds to Indonesia’s growing list of comprehensive trade agreements, highlighting its proactive approach to diversifying export markets and strengthening international economic cooperation.
In parallel, Indonesia has also completed negotiations for the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). This landmark deal was officially announced during a bilateral meeting between President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels.
Under the IEU-CEPA, approximately 80 percent of tariff lines will be eliminated, significantly expanding trade and investment opportunities between Indonesia and the European Union.
Together, the ICA-CEPA and IEU-CEPA represent a new era in Indonesia’s international trade diplomacy — reaffirming its commitment to building equitable, mutually beneficial, and forward-looking economic partnerships on a global scale.
