Hanoi (VNA) – Indonesia and Canada recently signed their Comprehensive Economic Partnership Agreement (CEPA), marking a strategic leap in strengthening economic ties and security between the two countries.
The free trade pact aims to eliminate or slash tariffs on more than 95% of Canadian exports to Indonesia, Ottawa’s largest market in Southeast Asia.
Indonesian President Prabowo Subianto called the signing of pact during his official trip to the North American country a “historic moment.” Meanwhile, Canadian Prime Minister Mark Carney said this is “the right deal at the right time with the right partner.”
Experts said CEPA is a strategic response amidst global economic uncertainties fueled by US tariff policies. CEPA is expected to bring benefits to Canada’s key exports, including wheat, potash, lumber, and soybeans while bolstering the country’s presence in the Indo-Pacific.
Besides, agreement will also lift more than 90% of tariffs on Indonesian imports, granting the country a major advantage in boosting its textile and leather exports to the North American market.
The two countries also signed a defence cooperation pact to enhance partnerships across military training, maritime security, cybersecurity, and peacekeeping activities./.
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