FX.co ★ Canada Seals First Indo-Pacific Trade Deal with Indonesia

Canada has entered into a Comprehensive Economic Partnership Agreement with Indonesia, aiming to secure duty-free access for approximately 95% of its exports within 8 to 12 months, as announced by Trade Minister Maninder Sidhu. This agreement represents Canada's inaugural Indo-Pacific trade deal under Prime Minister Mark Carney's administration, aligning with the broader strategy to diminish dependence on the United States. "I see significant opportunities in sectors such as agriculture, energy, telecom, defense, and aerospace," Sidhu stated. He further mentioned that Indonesia is "seriously considering" Canadian small modular reactors. The agreement could be ratified within a year, potentially doubling the bilateral trade—which currently stands at just over CAD 5 billion—within a six-year timeframe. Although Indonesia is not among Canada’s top 10 trading partners, it stands as Canada's largest export market in Southeast Asia, facilitating access to the region. Sidhu also expressed interest in negotiating a similar agreement with the Philippines and indicated the possibility of a visit to China in November to alleviate trade tensions.