Prime Minister Carney announces new trade agreement with Indonesia - Canada's first-ever bilateral trade agreement with an ASEAN country Français
OTTAWA, ON, Sept. 24, 2025 /CNW/ - The global trade landscape is rapidly changing as the United States fundamentally transforms all of its trading relationships. In this new era, our partners will no longer rely only on the strength of our values but also the value of our strength. We are building our strength at home, diversifying our partnerships abroad, and building a web of new connections to pursue our interests.
To that end, the Prime Minister, Mark Carney, welcomed the President of Indonesia, Prabowo Subianto, to Ottawa today to announce the new Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA). This is Canada's first-ever bilateral trade agreement with an ASEAN country.
This game-changing agreement will eliminate or reduce tariff and non-tariff barriers, create a more transparent and predictable environment for trade and investment, and open new opportunities for Canadian workers and industries in sectors such as clean technology, agri-food, infrastructure, critical minerals, and financial services. Once the CEPA is fully implemented, over 95% of current Canadian exports to Indonesia will have tariffs either reduced or fully eliminated, making Canadian exports – such as wheat, potash, wood, and soybeans – far more competitive in Indonesia. CEPA will come into force in 2026, giving consumers and businesses in both countries greater choices and lower costs, while empowering our Canadian workers with opportunities for high-quality careers and making our supply chains stronger and more resilient.
To further drive investment in one another's economies, Prime Minister Carney and President Subianto welcomed a new Market Leader Partnership Agreement between Export Development Canada (EDC) and the Indonesia Investment Authority (INA). Under this partnership, EDC will make debt financing of up to $825 million available to the INA. EDC and the INA will work in collaboration to attract investment and generate new business opportunities for Canadian exporters and investors in priority sectors across Indonesia, including infrastructure, digital services, renewable energy, and advanced manufacturing.
Prime Minister Carney and President Subianto also welcomed the signing of an agreement between the Business Council of Canada and Kadin, Indonesia's Chamber of Commerce and Industry, to strengthen trade and investment ties between Canada and Indonesia. This agreement will build a strong network of business alliances through bilateral trade missions.
With Indonesia's market projected to become a top five global economy by 2050, these partnerships will unlock significant potential for Canadian workers, businesses, and investors.
In a more divided and dangerous world, economic growth must be bolstered by shared defence and security. To that end, Canada and Indonesia also signed a new Defence Cooperation Agreement, building on the Military Cooperation Memorandum of Understanding signed last month. Together, these arrangements will deepen collaboration on military training and education, maritime security, cyber defence, and peacekeeping. It is a critical step in Canada's Indo-Pacific Strategy and a strong signal to the world that Canada and Indonesia are committed to peace and stability in the region.
Quotes
"Canada and Indonesia are unlocking major new economic opportunities together. Our new trade agreement is a game-changer for our workers and businesses, opening new markets and driving more investment between our growing economies. In the face of a shifting global landscape, Canada's new government is diversifying and strengthening our partnerships to create greater prosperity, security, and high-quality career opportunities for Canadian workers."
— The Rt. Hon. Mark Carney, Prime Minister of Canada
"The Indo-Pacific region will play a critical role in shaping Canada's future over the next half-century. Through Canada's Indo-Pacific Strategy, we will continue to increase our defence and security co-operation with the Member States of the Association of Southeast Asian Nations, and work with our allies and partners to ensure a meaningful and reliable defence presence in the region. Strengthening our defence relationships with key partners like Indonesia demonstrates Canada is committed to supporting regional peace, security, and stability, and will be for the long-term."
— The Hon. David J. McGuinty, Minister of National Defence
"The Canada-Indonesia CEPA is a strong step forward in Canada's trade diversification agenda. It will open new opportunities for Canadian businesses in one of Southeast Asia's leading economies, create good jobs for Canadians, and expand Canada's reach in the Indo-Pacific – one of the world's fastest-growing regions."
— The Hon. Maninder Sidhu, Minister of International Trade
Quick facts
- Indonesia is the world's fourth most populous country, with a population of 282 million and a GDP of approximately $1.9 trillion in 2024. It is a fast-growing global market and Southeast Asia's largest economy.
- Projected to become a top five global economy by 2050, Indonesia's market holds significant potential for Canadian businesses, entrepreneurs, and investors.
- In 2024, Indonesia was Canada's third-largest merchandise trading partner among Southeast Asian countries, totalling $5.6 billion. Canadian merchandise exports to Indonesia were valued at $2.3 billion, making it Canada's largest export market in Southeast Asia and 18th largest worldwide.
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Associated links
This document is also available at https://pm.gc.ca
SOURCE Prime Minister's Office
PMO Media Relations: [email protected]
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