Jakarta. Indonesia’s trade deal with Canada -- the first of its kind in ASEAN -- will enter into force by the end of 2026, according to an envoy.

The accord, also known as the Comprehensive Economic Partnership Agreement, was a major outcome of the President Prabowo Subianto’s trip to Ottawa in September 2025. Since then, both nations had been trying to seal the ratification -- or lawmaking process -- which was a prerequisite for the tariff eliminations to come into effect. The deal came at a time when the world continues to look for ways to offset US tariffs, and now, uncertainties brought by the Iran war.

Canadian Ambassador to Indonesia Jess Dutton recently told the press that his country’s “parliament had completed the ratification”. It has secured the so-called “royal assent”, the final step before the law is enforceable. The ball is now in Indonesia’s court, as Prabowo is set to roll out a presidential regulation.

“This will position the CEPA for a possible entry into force by the end of the year,” Dutton said in a briefing in Jakarta.

Prabowo had spoken with Canadian Prime Minister Mark Carney over the phone earlier this month to discuss the progress. Carney had given his word to wrap up the negotiations of a separate Canadian trade agreement with the ASEAN grouping within this year, according to Dutton.  

The CEPA will bind Indonesia to get rid of or slash the duties on 85.9% of its tariff lines for Canadian goods entering its market. In turn, Canada eliminates the duties on 90.5% of its tariff lines.

Indonesia reported having nearly $4.4 billion in trade with Canada last year. Its exports to Canada were worth almost $1.7 billion, with electrical machinery and equipment making up a huge bulk of the shipments. Imports from Canada reached close to $2.7 billion in value at the time.

The ASEAN grouping revealed that two-way trade with Canada hit $23.4 billion in 2024, although this figure did not include newcomer Timor-Leste.

During Prabowo’s Ottawa trip last year, Carney had told the retired army general that the tariff eliminations would “open up opportunities for Canadian businesses in food, agricultural, agri-food, pulp and paper sectors”.

“This is the right deal, at the right time, with the right partner. [Indonesia] is Canada’s largest export market in Southeast Asia,” Carney said.

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