Indonesia-Canada tariff cuts set for December 1 under trade pact
The agreement will eliminate duties across 3,100 tariff lines, while a bilateral trade and investment summit is planned for 2027.
Canada and Indonesia will begin implementing their Comprehensive Economic Partnership Agreement (ICA-CEPA) on December 1, 2026, with duties removed across 3,100 tariff lines, according to Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto.
Airlangga discussed the pact with Canadian International Trade Minister Maninder Sidhu at talks held in the Philippines. He said ratification in Indonesia had been completed through a presidential regulation, followed by formal notification to Canada through a diplomatic note in October 2026.
Indonesia expects the deal to help its products reach more markets, make its exports more competitive and attract investment in both directions, Airlangga said. The two governments have agreed on a Trade and Investment Summit for 2027, where businesses and investors can explore cooperation to support implementation.
Two-way trade stood at US$4.3 billion in 2025, of which US$1.70 billion was Indonesian exports. Major Indonesian shipments included footwear, cocoa butter, natural rubber, electrical machinery, and mobile phones and gadgets.
By September 2026, trade between the countries had reached US$4.03 billion, including US$1.29 billion in Indonesian exports. The bilateral total was 19.76 per cent higher than the US$3.36 billion recorded for the equivalent period a year earlier.
The ministers also considered the ASEAN-Canada Free Trade Agreement (ACAFTA). Indonesia called for those negotiations to finish by March 2027. Airlangga also expressed interest in working more closely with Canada on investment, supply chains and economic transformation.
