Jakarta (VNA) – Indonesia expects the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) to serve as a strategic springboard for expanding its presence in the North American market, amid ongoing geopolitical volatility and rising protectionist trends in global trade.
Indonesian Trade Minister Budi Santoso stated on May 19 that ICA-CEPA is expected not only to reduce trade barriers and improve access to the Canadian market, but also to create new opportunities for Indonesian goods to penetrate deeper into North America, a region with a combined population of around 500 million.
According to the official, Canada is a strategic entry point for Indonesian products into the North American market, particularly as US tariff policies remain unpredictable. The agreement is also viewed as a tool for Indonesia to diversify its export markets and reduce reliance on traditional trading partners.
He said that Indonesia's trade relations with Canada are complementary, thus not causing direct competition with domestic industries.
Canada has a high purchasing power with a Gross Domestic Product (GDP) of 2.28 trillion USD and a GDP per capita of around 65,000 USD per year. Additionally, Canada's consumer preferences for natural, healthy, halal, and environmentally friendly products align with Indonesia's flagship products.
Indonesia’s data showed that the bilateral trade between the two nations in 2025 reached 4.36 billion USD, a sharp increase from 3.57 billion in 2024. Meanwhile, Indonesia's exports to Canada rose from 1.44 billion USD to 1.69 billion USD in the same year.
In the service sector, the total trade of services between the two countries in 2024 reached over 506 million USD, with a surplus of about 103 million USD for Indonesia.
Under the agreement signed at Ottawa in September last year, Canada commits to eliminating tariffs on approximately 90.55% of tariff lines covering 6,573 Indonesian products, while Indonesia will remove tariffs on about 85.54% of tariff lines applied to 9,764 Canadian products.
Beyond goods trade, ICA-CEPA also expands opportunities in services and the digital economy. The two sides have agreed to facilitate the movement of professionals such as engineers, architects, IT specialists, and healthcare workers. The agreement also includes provisions on electronic document recognition, personal data protection, and cross-border data flows, aiming to further promote the growth of digital trade in the future./.
Indonesia, Canada seal economic partnership agreement
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.
