Ottawa, Ontario – Sonia Sidhu, Member of Parliament for Brampton South, is highlighting the newly announced Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) as an important step forward in Canada’s efforts to diversify trade and strengthen economic resilience.
Announced today in Ottawa by Prime Minister Mark Carney and Indonesian President Prabowo Subianto, CEPA is Canada’s first-ever bilateral trade agreement with an ASEAN country, and represents a strategic move to expand Canada’s global trade footprint.
“This is good news for Canada,” said MP Sidhu. “As the global trade landscape evolves, CEPA reflects our commitment to building new partnerships that support Canadian workers, businesses, and long-term economic growth.”
The agreement will eliminate or reduce tariffs on over 95% of Canadian exports to Indonesia, creating new opportunities in sectors such as clean technology, agri-food, infrastructure, critical minerals, and financial services. It will also foster a more transparent and predictable environment for trade and investment.
CEPA is expected to come into force in 2026, giving Canadian exporters a competitive edge in one of the world’s fastest-growing economies. Products like wheat, potash, wood, and soybeans will benefit from reduced costs, while consumers and businesses in both countries will gain access to more choices and lower prices.
In addition to CEPA, a new Market Leader Partnership Agreement between Export Development Canada (EDC) and the Indonesia Investment Authority (INA) will unlock $825 million in financing to support Canadian exporters and investors in priority sectors across Indonesia.
“Canada’s economic future depends on smart, forward-looking partnerships,” added MP Sidhu. “This agreement is a strong example of how we’re diversifying trade and creating new pathways for prosperity.”
Canada and Indonesia also signed a Defence Cooperation Agreement, reinforcing shared commitments to peace, maritime security, cyber defence, and regional stability—key components of Canada’s Indo-Pacific Strategy.
MP Sidhu emphasized that these developments reflect Canada’s broader strategy to build strength at home while forging new connections abroad.
“In a changing world, Canada is showing leadership by investing in relationships that deliver real benefits for our economy and our communities.”
“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