Jakarta Globe | 6 November 2024
Indonesia-Canada trade pact negotiations enter final stage
by Jayanty Nada Shofa
Jakarta. The negotiations of the trade deal between Indonesia and Canada have entered the final stage as the two economies wish to substantially conclude the agreement later this week.
In 2021, Indonesia and Canada officially launched negotiations for a comprehensive economic partnership agreement (CEPA) that will pave the way for greater market access. Negotiators of both countries are currently convening in the West Javan capital of Bandung for what Indonesia hopes to be the final round of negotiations.
The CEPA talks -- which will go on until Friday -- will focus on the remaining outstanding issues, including market access and critical minerals. They are aiming for a substantial conclusion in this round; meaning that both sides wish to agree on the majority of the text by Friday.
“This marks the 10th round of negotiations. With the collaborative spirit that we have seen in the past negotiations, the two countries are optimistic that this would be the final round,” Trade Ministry’s senior official Djatmiko Bris Witjaksono was quoted as saying in a recent press statement.
Government data showed Indonesia-Canada trade amounted to $2.4 billion in January-August 2024. Indonesia recorded a $528.4 million deficit when trading with Canada that period. Bilateral trade totaled $3.4 billion last year during which Indonesia mainly imported Canadian wheat and fertilizers, to name a few.
If concluded and signed, the Indonesia-Canada CEPA would mark a milestone for the newly established President Prabowo Subianto government. Prabowo has said that he wanted to befriend all countries as part of his foreign policy.
The 73-year-old retired army general will soon embark on his first-ever foreign trip as president. Prabowo is scheduled to attend the G20 Summit in Brazil and the Asia-Pacific Economic Cooperation (APEC) annual meeting in Peru later this month. Canadian Prime Minister Justin Trudeau is expected to attend these summits.
