Question Period Note: Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA)

Following the conclusion of CEPA negotiations with Indonesia on December 2, 2024, Canada is preparing to sign and bring the agreement into force as soon as possible.

• The Comprehensive Economic Partnership Agreement (CEPA) with Indonesia creates new opportunities for Canadian exporters and investors in Indonesia's dynamic market.
• The CEPA is a key deliverable of the government's Indo-Pacific Strategy and supports efforts to diversify trade.
• Canada and Indonesia have agreed to sign the Agreement in 2025. Once signed, the government's transparency commitments will be upheld by tabling the full text of the Agreement in Parliament for 21 sitting days before introducing implementing legislation.
• The CEPA includes robust environment and labour provisions - to ensure Parties do not lower environmental protections and commit them to uphold internationally recognized labour standards.
• Investor-State Dispute Settlement (ISDS), which is part of the CEPA, ensures that Canadian companies investing large sums of money abroad are protected from uncertainty, which is a particular challenge in emerging economies.

Conclusion of Canada-Indonesia CEPA negotiations was announced on December 2, 2024, during the Team Canada Trade Mission to Indonesia. Canada and Indonesia agreed to sign the Agreement in 2025 with a view to bringing it into force in 2026.
Indonesia is the fourth most populous country and the eighth largest economy in the world. The CEPA will improve market access conditions for Canada's goods exports through tariff elimination for a majority of goods, prioritizing those of export interest, and addressing non-tariff measures and other issues adversely affecting Canada's exports through provisions on sanitary and phytosanitary measures, technical barriers to trade, and good regulatory practices. The CEPA will also provide greater predictability and transparency for Canadian service providers and investors across a range of sectors. The CEPA also includes enforceable labour provisions and comprehensive environmental commitments. The conclusion of the CEPA comes at a critical time when Canadian businesses are seeking to diversify their exports and enter new markets.

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