Indonesia and Canada have concluded substantive negotiations for the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), set to take effect in 2026. Minister of Trade Budi Santoso highlighted the key benefits for Indonesia, including tariff liberalization on 90.5% of goods exported to Canada, valued at USD 1.4 billion. Priority products benefiting from duty-free access include textiles, paper and derivatives, wood products, processed foods, bird nests, and palm oil. Additionally, the agreement guarantees preferential treatment for Indonesian service providers across sectors such as business services, telecommunications, construction, tourism, and transportation. New investment opportunities and market access are expected in manufacturing, agriculture, fisheries, forestry, mining, and energy infrastructure sectors.

Budi emphasized that ICA-CEPA would bolster Indonesia's presence in North America, reducing trade barriers in the region. The agreement also encompasses commitments on intellectual property, good regulatory practices, e-commerce, competition, MSMEs, women’s economic empowerment, environmental cooperation, and labor. A Joint Ministerial Statement marking the end of negotiations was signed on December 2, 2024, in Jakarta by Budi Santoso and Canada’s Minister of Export Promotion, Mary Ng. Two additional MoUs, on critical mineral cooperation and sanitary/veterinary standards, were also finalized. The agreement is expected to be signed by mid-2025, with implementation starting in 2026.

Source: https://finance.detik.com/industri/d-7667954/produk-tekstil-kelapa-sawit-ri-bakal-bebas-bea-masuk