Notice of Intent to enter into negotiations towards a Canada-Indonesia Comprehensive Economic Partnership Agreement

June 21, 2021

Dear Members of Parliament:

In accordance with the enhanced transparency requirements set out in the amended Policy on Tabling of Treaties in Parliament, I am pleased to notify the House of Commons of the government’s intent to initiate negotiations for a Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA). The Government of Canada intends to commence negotiations by holding a first round of negotiations with Indonesia no earlier than 90 days from the date of this notice.

Expanding trade and investment with fast-growing markets is key to ensuring sustainable prosperity for Canadian businesses, workers and families. The Government of Canada is committed to helping Canadians succeed globally by diversifying trade and investment opportunities. By pursuing bilateral free trade agreement negotiations with Indonesia, the Government of Canada will seek to secure preferential market access to Canada’s largest export market and fastest-growing economy in Southeast Asia.

The economic relationship between Canada and Indonesia presents significant opportunities to deepen existing trade and investment ties and unlock new potential for growth. Although the COVID-19 pandemic has created challenges for international trade, Canada’s trade with Indonesia has remained relatively stable since the start of the pandemic. Overall, merchandise trade is balanced and complementary. In 2020, Canadian merchandise exports were valued at $1.8 billion. Top Canadian exports include agriculture and agri-food, fertilizers, pulp and paper, and aerospace products. Meanwhile, Canada imported $1.6 billion from Indonesia in 2020. Top imports from Indonesia included rubber, agriculture and agri-food, footwear, and apparel.

A Canada-Indonesia CEPA would provide Canadians with enhanced access to Southeast Asian supply chains and trade and investment opportunities. A CEPA would benefit Canadian exporters of goods and services by eliminating tariffs and other barriers; enhancing market access and protection for investors; and creating a more transparent, predictable and accessible environment for international trade. In approaching such an agreement, the government is committed to ensuring that a CEPA reflects the interests of all Canadians, including creating new opportunities for the middle class, small and medium-sized enterprises, women, and Indigenous people.

The Government of Canada held public consultations from January 9 to February 23, 2021, to solicit the views of Canadians on a possible Canada-Indonesia CEPA and related economic, social and environmental impacts. Through this process, Canadians demonstrated strong support for a CEPA with Indonesia. A summary of the feedback received has been published: Report: Public consultations on a possible Canada-Indonesia Comprehensive Economic Partnership Agreement

In accordance with the Policy on Tabling of Treaties in Parliament, Canada’s negotiating objectives for a Canada-Indonesia CEPA will be tabled in the House of Commons no later than 30 days before Canada holds its first round of negotiations with Indonesia. Should negotiations be successfully concluded, the government will also table an economic impact assessment of the agreement at such a time as the implementing legislation for a Canada-Indonesia CEPA is tabled.

I look forward to working closely and transparently with Parliament throughout negotiations for a Canada-Indonesia CEPA.

Sincerely,

The Honourable Mary Ng, P.C., M.P.