Stakeholder debrief report – Canada-Indonesia CEPA negotiations – Round 8

June 24-28, 2024 (Ottawa, ON)

General overview:

The 8^th round of negotiations toward a Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) took place from June 24-28 in Ottawa, ON.

The Canadian delegation was led by Chief Negotiator (CN) Aaron Fowler, Associate Assistant Deputy Minister, Trade Policy and Negotiations, and supported by Deputy CN Alisha Somerville, Deputy Director ASEAN and Indonesia, Trade Policy and Negotiations. Indonesia’s delegation was led by their CN, Mr. Djatmiko Bris Witjaksono, Director General of International Trade Negotiations, Ministry of Trade of the Republic of Indonesia, and supported by Deputy CN Mr. Johni Martha, Director of Bilateral Negotiations, Ministry of Trade of the Republic of Indonesia.

Round 8 negotiations covered 22 issue areas over 75 sessions, with most sessions taking place in person and 11 sessions taking place virtually.

The following issues were discussed:

• National Treatment and Market Access
• Rules of Origin (virtual)
• Origin Procedures
• Customs Procedures and Trade Facilitation
• Technical Barriers to Trade (virtual)
• Sanitary and Phytosanitary Measures (virtual)
• Trade in Services
• Financial Services
• Investment
• Electronic Commerce
• Intellectual Property
• Temporary Movement of Natural Persons
• Government Procurement
• Labour
• Economic and Technical Cooperation
• Environment
• Trade and Small and Medium-Sized Enterprises
• Women’s Economic Empowerment
• Transparency, Anti-Corruption and Responsible Business Conduct
• Dispute Settlement

Canada and Indonesia also met in-person to discuss State-Owned Enterprises and Critical Minerals.

Key takeaways from Round 8:

The tone at Round 8 was positive, with constructive engagement across all tables.

Three chapters were closed:  

• Temporary Movement of Natural Persons (text only)
• Customs Procedures and Trade Facilitation
• Administrative and Institutional Provisions

Bringing the total number of chapters closed to six:

• Temporary Movement of Natural Persons (text only)
• Customs Procedures and Trade Facilitation
• Administrative and Institutional Provisions
• Good Regulatory Practices (previously closed)
• Telecommunications (previously closed)
• Competition Policy (previously closed)

Two additional chapters: Final Provisions and Transparency, Anti-Corruption and Responsible Business Conduct - substantively closed with only minor issues linked to other negotiating areas remaining.

The 9^th round of negotiations will take place in Canada the week of September 23, 2024.

Both sides will continue to work towards a successful conclusion this year, as set out by Leaders.

Key developments from the tables:

Several goods-related tables made solid progress, including Sanitary and Phytosanitary Measures and Technical Barriers to Trade – both of which are targeted to conclude at Round 9.

Tariff negotiations are ongoing, and progress is being made on a few remaining provisions of the National Treatment and Market Access text, including on agricultural trade.

On Rules of Origin, Parties are close to resolving a number of key issues in the text and dedicated significant time to advancing the negotiations on product-specific rules of origin.

On Trade in Services, Parties made excellent progress resolving issues in the text, closed the Annex on Development and Administration of Measures and are close to closing the Professional Services Annex. Financial Services and Intellectual Property tables were both able to agree to a number of key articles. Investment negotiators made progress in several areas and held their first exchange on Investor-State Dispute Settlement, agreeing to further engage intersessionally. Discussions were constructive and positive, with both parties engaged in resolving remaining text.

Negotiations on market access for services, investment and financial services will begin soon, once agreement on negotiating modalities is reached.

Parties had productive exchanges on Labour, Environment and Inclusive Trade, engaging in text-based discussions. Discussions were also held on State-Owned Enterprises and cooperation on Critical Minerals. In both areas, parties committed to discuss further at Round 9.

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