Post by : Meena Ariff

Canadian Prime Minister Mark Carney described the agreement as "the right deal at the right time with the right partner." He emphasized that the CEPA comes at a crucial moment as global economic instability continues and protectionist policies, particularly from the United States, disrupt international trade flows. Carney highlighted that the pact will help Canadian businesses expand in the Indo-Pacific while supporting economic growth at home.

Historic Moment for Indonesia

Indonesian President Prabowo Subianto called the agreement a "historic moment" during his official visit to Ottawa. He noted that it is the first agreement of its kind between Canada and an Association of Southeast Asian Nations (ASEAN) member country. President Prabowo added, “I am very fortunate to be the Indonesian president who brings this agreement back to Indonesia,” emphasizing its strategic and economic importance for the nation.

Boost to Trade Between Canada and Indonesia

The CEPA opens wider opportunities for Canadian exports, including wheat, potash, timber, and soybeans, while Indonesia benefits from reduced tariffs on garments, leather goods, and other products entering North America. Analysts say the agreement will create a mutually beneficial trade environment, strengthening economic ties and expanding access to key markets for both nations.

Defence Cooperation Strengthened

Alongside the trade agreement, the two countries signed a defence cooperation pact, aimed at enhancing collaboration in military training, maritime security, cyber defence, and international peacekeeping operations. This agreement reinforces bilateral strategic ties and reflects a shared commitment to regional stability in the Indo-Pacific region.

Broader Strategic Implications

Experts note that the dual agreements reflect Canada’s broader strategy to strengthen its role in the Indo-Pacific, a policy initiated under the previous administration. By combining trade liberalization with security cooperation, Canada and Indonesia are positioning themselves as key partners in a region facing geopolitical competition and economic transformation.