ASIATODAY.ID, JAKARTA – The Indonesia-Canada Comprehensive Economic Partnership (ICA CEPA) negotiations have been substantially completed and will officially take effect in 2026.
The Indonesian Minister of Trade, Budi Santoso, said that through ICA CEPA, the first benefit obtained by Indonesia was that trade in goods was liberalized up to 90.5% of the total tariffs entering Canada, with a trade value of US$1.4 billion.
“Some of Indonesia’s priority products that have market access from Canada are textiles, paper and its derivatives, wood and its derivatives, processed foods, swallow’s nests and palm oil,” said Budi Santoso in a press conference with the Minister of Export Promotion, International Trade and Economic Development Canada, Mary Ng, at the Mulia Hotel, Jakarta, Monday, December 2 2024.
The second benefit, namely trade in services, where this agreement guarantees preferential treatment for Indonesian service providers including service sectors such as business services, telecommunications, construction, tourism and transportation.
Budi said the agreement could also open up market access, both in the manufacturing, agriculture, fisheries, forestry, mining and quarrying sectors, as well as energy infrastructure.
Apart from that, other commitments are intellectual property rights, good regulatory practices, e-commerce, business competition, small and medium enterprises, women’s economic empowerment, the environment and employment.
Meanwhile, the signing of the Joint Ministerial Statement which marks the end of the ICA CEPA negotiations, took place today, Monday, December 2 2024 in line with the visit of the Minister of Export Promotion, International Trade and Economic Development of Canada, Mary Ng, to Jakarta.
Budi said that there were two MoUs part of ICA CEPA, namely Critical Mineral Cooperation and Sanitation Cooperation and Vito Sanitation which were also signed by the Governments of Indonesia and Canada.
In line with the signing of the Joint Ministerial Statement, Budi said that the two countries agreed that the agreement could be signed in mid-2025.
“The estimated implementation time is 2026,” concluded Budi.
For information, total trade between Indonesia and Canada will reach US$2.08 billion in the January-July 2024 period.
According to records from the Indonesian Ministry of Trade, Indonesia’s exports to Canada reached IS$811.50 million, while Indonesia’s imports from Canada were US$1.27 billion. Meanwhile, total trade between the two countries will reach US$3.44 billion in 2023. Indonesia’s main export commodities to Canada are telephone equipment, production products or waste, natural rubber, accessories and luggage. Meanwhile, Indonesia’s main import commodities from Canada are wheat, fertilizer, soybeans and sawdust. (AT Network)
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