Canada, Indonesia discuss Comprehensive Economic Partnership Agreement

24 Jun '21

2 min read

Pic: Shutterstock

Canada and Indonesia recently began negotiations over a Comprehensive Economic Partnership Agreement (ICA-CEPA) that is expected to boost bilateral trade and investment. Canadian minister of small business, export promotion and international trade Mary Ng and Indonesian trade minister Muhammad Lutfi officially launched the talks during a virtual ceremony on June 21.

“Once it is concluded, an Indonesia-Canada CEPA will level the playing field and allow Indonesian businesses to compete with exporters from Canada’s other free trade partners,” ambassador Cameron MacKay said in a statement issued by the Canadian Embassy in Jakarta.

“This is an extension of President Joko Widodo’s instruction to have Indonesia actively negotiate international trade deals to open new markets, especially new export markets, amid the pandemic,” media reports in Indonesia quoted Lutfi as saying.

This is the second such agreement being negotiated with a country from the Americas after Indonesia ratified a CEPA with Chile in 2019. Canada has free trade agreements with over 50 countries.

Canada’s and Indonesia’s bilateral trade value is quite small, amounting to just over $2 billion in 2020, according to Statistics Indonesia. Canada was Indonesia’s 15th biggest foreign investor last year, with investments standing at $175.3 million, according to Investment Coordinating Board. The United States invested $749.7 million, making it the eighth biggest investor.

The embassy’s statement said that, in 2020, Canada’s top exports to Indonesia were cereals, fertilisers, wood pulp, oilseeds and machinery while its top imports were rubber, electrical and electronic equipment and textiles.

Fibre2Fashion News Desk (DS)

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