Jakarta. Canada has agreed to eliminate tariffs on more than 90 percent of Indonesian products under a landmark Comprehensive Economic Partnership Agreement (CEPA) signed on Wednesday in Ottawa.

Trade Minister Budi Santoso said the deal covers Indonesia’s key export products, including textiles, footwear, and processed foods. In return, Indonesia will remove tariffs on 85.54 percent of Canada’s priority exports, such as frozen beef, wheat, potatoes, seafood, and processed foods.

“This agreement opens broader market access and strengthens the competitiveness of Indonesian products and services in Canada,” Budi said in a statement Thursday.

For Indonesia, the pact marks its first comprehensive trade agreement with a North American country. The tariff cuts will apply to 6,573 Indonesian product categories, including furniture, light electronics, and automotive goods.

Several Indonesian exports will immediately enjoy zero tariffs once the CEPA enters into force, among them processed foods, seafood, natural fiber handicrafts, household items, granite, and marble.

“This signing is only the beginning. Our next task is to ensure that this agreement delivers tangible benefits for our people, businesses, and investors,” Budi added.

Trade Snapshot
From January to July 2025, bilateral trade between Indonesia and Canada reached $2.72 billion, up nearly 30 percent from $2.09 billion in the same period last year. Despite the growth, Indonesia still ran a trade deficit, exporting $1.01 billion while importing $1.71 billion.

Indonesia’s main exports to Canada include natural rubber, footwear, cocoa, vegetable oils and fats, and textiles. Key imports from Canada are wheat, fertilizers, soybeans, chemical pulp, and gold.

The initial CEPA agreement was signed by Budi and Canadian counterpart Maninder Sindhu, witnessed by President Prabowo Subianto and Canadian Prime Minister Mark Carney in Ottawa.

The deal came just weeks after Indonesia concluded nearly a decade of CEPA negotiations with the European Union.