Prime Minister Mark Carney held a discussion today with the President of Indonesia, Prabowo Subianto, to address ongoing international economic challenges and the progress of bilateral trade relations.
Global Economic and Energy Outlook
During their conversation, the leaders focused on the implications of the conflict in the Middle East, specifically examining how the ongoing regional instability is affecting global energy markets and the broader economy.
Strengthening Trade Ties
The discussion underscored the anticipated ratification of the Canada-Indonesia CEPA. Once fully implemented, the agreement is expected to eliminate or reduce tariffs on more than 95% of current Canadian exports to Indonesia, including key commodities such as wheat, potash, wood, and soybeans.
Beyond specific commodity trade, the agreement aims to foster a more transparent investment environment. It is designed to create new opportunities for Canadian industries, with a focus on critical minerals, clean technology, infrastructure, financial services, and the agri-food sector.
Future Cooperation
Prime Minister Carney also highlighted efforts to accelerate negotiations for a comprehensive Canada-ASEAN free trade agreement. President Subianto expressed continued support for this objective, and both leaders agreed to maintain close contact as these trade and diplomatic initiatives proceed.
Frequently Asked Questions
What is the status of the Canada-Indonesia CEPA?
The agreement was signed in September and is currently awaiting ratification.
Which sectors are expected to benefit from the CEPA?
The agreement is expected to open opportunities in clean technology, agri-food, infrastructure, critical minerals, and financial services.
What is the goal for the Canada-ASEAN free trade negotiations?
Prime Minister Carney is working to accelerate these negotiations with the goal of concluding an agreement in 2026.
How might the increased competition for Canadian exports under the new trade agreement influence the domestic supply of these resources in the coming years?
