Antara News is reporting that after more than two years of negotiations, Indonesia and Canada have signed a Joint Statement on the Settlement of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA CEPA) which will expand market access for Indonesian products in North America.
The signing was carried out by Indonesian Minister of Trade Budi Santoso and Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng at the opening of the Canadian Trade Mission to Indonesia in Jakarta, Monday (2/12/24.)
“After the struggle of the two negotiating teams for more than 2.5 years, Indonesia finally succeeded in having a comprehensive trade agreement with Canada. Through this Indonesia-Canada CEPA, market access for Indonesian products will be wider to the North American region, especially Canada,” said Budi.
Budi explained that in addition to trade in goods, this agreement will also provide preferential treatment for Indonesian service providers, including for the business services, telecommunications, construction, tourism and transportation sectors, says Antara News, adding that for investment, this agreement will facilitate access to investment in the manufacturing, agriculture, fisheries, forestry, mining and quarrying, and energy infrastructure sectors.
The agreement also includes other commitments, namely intellectual property rights, good regulatory practices, e -commerce, business competition, Small and Medium Enterprises (SMEs), women’s economic empowerment, the environment, and employment.
In addition to the signing of the Indonesia-Canada CEPA, the visit of the Canadian Trade Mission to Indonesia on 1 to 3 December 2024 was also an important moment.
The trade mission brought together more than 180 Canadian companies to explore opportunities for cooperation with Indonesia in priority sectors such as agriculture, clean technology, information technology and infrastructure, reports Antara News.
Budi said that Indonesia provides support to Canada, which will assume the G7 Presidency in 2025.
“Indonesia believes that Canada will play a big role as a bridge between developed and developing countries,” said Budi.
Meanwhile, Minister Mary Ng said the completion of the CEPA agreement marks the right time for business actors and investors, both from Indonesia and Canada, to further explore the market in the partner country, according to Antara News.
“Now is a great time for Canadian businesses and investors to expand their exploration into Southeast Asia’s largest economy. On the other hand, now is also a great time for Indonesian businesses and investors who want to expand their wings into the North American market,” said Mary Ng.
The total value of Indonesia-Canada trade in the last five years (2019–2023) increased by 11.24 percent with a trade value in 2023 of USD 3.4 billion. Meanwhile, the total value of Indonesia-Canada trade in the period January to September 2024 was USD 2.6 billion, an increase of 4.07 percent compared to the same period in 2023.
In 2023, Indonesia’s leading export products to Canada include telephones, waste and scrap, natural rubber, and crates or suitcases. Meanwhile, Indonesia’s import products from Canada include wheat (wheat and meslin), mineral and chemical fertilizers, soybeans, chemical pulp, and wood pulp.
Source: Antara News
Stock photo by Kindel Media on Pexels
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