Canada and Indonesia sign free trade agreement: tariffs lifted on 95% of Canadian exports

On September 24, 2025, Canada’s Minister of International Trade and Indonesia’s Minister of Trade signed in Ottawa a Comprehensive Economic Partnership Agreement (CEPA). Negotiations had begun in June 2021 and, after ten rounds of talks, the two parties announced their substantive conclusion in December 2024.

The agreement, which marks Canada’s first-ever bilateral trade deal with an ASEAN country and is expected to enter into force in 2026, will eliminate or reduce tariffs on more than 95% of Canadian exports to Indonesia. It also addresses non-tariff barriers and aims to create a more transparent and predictable environment for trade and investment.

Indonesia is the world’s fourth most populous country, Southeast Asia’s largest economy, and a fast-growing global market, with an estimated GDP of around $1.9 trillion in 2024.

Photo credit: Freepik

Source: Government of Canada