The Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) is set to enhance Indonesia's access to North American markets, according to Trade Minister Budi Santoso. Following a bilateral meeting with Canada’s Minister of Export Promotion, International Trade, and Economic Development, Mary Ng, on December 2, 2024, in Jakarta, Minister Budi emphasized ICA-CEPA's role in easing market entry for Indonesian products into North America. The agreement includes tariff exemptions for several Indonesian commodities, preferential treatment for services sectors like business, telecommunications, construction, tourism, and transportation, and improved investment opportunities in industries such as manufacturing, agriculture, fisheries, forestry, mining, and energy infrastructure. Additionally, the agreement addresses intellectual property rights, e-commerce, competition, MSME empowerment, women’s economic participation, environmental sustainability, and labor issues.
The ICA-CEPA also aims to reduce Indonesia's trade deficit with Canada. In 2024, the Indonesia-Canada trade balance recorded a deficit of USD 536 million, significantly lower than the USD 1.7 billion deficit in 2023. Indonesia's exports to Canada reached USD 1.06 billion, while imports totaled USD 1.59 billion from January to September 2024, contributing to a total trade value of USD 2.65 billion. In comparison, the 2023 trade value was USD 3.44 billion, with Indonesian exports at USD 1.30 billion and imports at USD 2.14 billion. Minister Budi expressed optimism that the ICA-CEPA will open broader market access and further narrow the trade deficit, strengthening Indonesia’s position in the global market.
