Canada Strengthens Trade Ties in Asia: New Horizons in Indonesia

Canada is making a strategic move to enhance its trade relations in the Indo-Pacific region, starting with a landmark agreement with Indonesia. The Comprehensive Economic Partnership Agreement aims to provide duty-free access for nearly 95% of Canadian exports to Indonesia within the next year. This initiative marks a crucial step in Canada's plan to diversify export markets, a promise made by Prime Minister Mark Carney at the start of his tenure earlier this year.

International Trade Minister Maninder Sidhu highlighted the potential for Canadian industries, including agriculture, energy, telecom, and aerospace, in the Southeast Asian market. Indonesia's interest in Canadian small modular reactors underscores the growing bilateral trade relationship, which is expected to double within six years. As trade with Indonesia, Canada's largest export market in Southeast Asia, intensifies, Canada is positioning itself as a key player in the fast-growing region.

This agreement is part of a broader Southeast Asian outreach, with the Philippines, Malaysia, South Korea, and Japan in Canada's sights for future partnerships. Additionally, Canada aims to improve ties with China, its second-largest trading partner, following tensions with the U.S. under President Trump. The Canadian government is also in the early stages of discussions with India, signaling a significant shift in international trade strategy.