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Sunday, November 15, 2026

Indonesia-Canada CEPA to remove duties on 3,100 tariff lines Dec. 1

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Jakarta (ANTARA) - The Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) will enter into force on Dec. 1, 2026, eliminating import duties on 3,100 tariff lines, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

During a meeting with Canada's International Trade Minister Maninder Sidhu in the Philippines, he noted that Indonesia had ratified the agreement through a presidential regulation and notified the Canadian government via a diplomatic note in October 2026.

"The implementation of the ICA-CEPA serves as a crucial step toward strengthening economic ties between Indonesia and Canada. We hope businesses from both countries will take full advantage of this agreement," he said, according to a statement received in Jakarta on Sunday.

Airlangga added that Indonesia expects the bilateral pact to expand market access for its products, boost export competitiveness, and encourage two-way investment.

The minister expressed confidence that the ICA-CEPA would further increase bilateral trade, which reached US$4.3 billion in 2025.

Indonesia exported US$1.70 billion worth of products to Canada last year, up 11.07 percent from US$1.53 billion in 2021. Exports in 2025 were led by mobile phones and gadgets, electrical machinery, natural rubber, cocoa butter, and footwear.

Bilateral trade reached US$4.03 billion as of September 2026, with Indonesia's exports totaling US$1.29 billion. The figure represented a 19.76 percent increase from US$3.36 billion recorded in the same period a year earlier.

Indonesia and Canada have agreed to hold a Trade and Investment Summit in 2027 to support the full implementation of the ICA-CEPA, providing a platform for businesses and investors from both countries to explore cooperation opportunities.

Beyond bilateral relations, the two countries also exchanged views on the ASEAN-Canada Free Trade Agreement (ACAFTA), with Indonesia encouraging negotiations on the framework to conclude by March 2027.

"Through stronger bilateral and regional cooperation, Indonesia expects more productive economic ties with Canada that deliver concrete benefits for both countries," Airlangga said.

He also conveyed Indonesia's eagerness to deepen engagement with Canada through trade and initiatives aimed at generating quality investment, strengthening supply chains, and advancing economic transformation.

Related news: ICA-CEPA to boost Indonesian MSME exports to Canada: Kadin

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Translator: Bayu Saputra, Tegar Nurfitra
Editor: Azis Kurmala
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