New Agreement with Indonesia Opens Markets and Supports Grain Growth

Canada Indonesia Trade Deal Boosts Cereals

Canada and Indonesia have signed the Comprehensive Economic Partnership Agreement (CEPA), a new trade deal designed to expand grain exports and foster agricultural growth. The agreement strengthens Canada’s position in Indonesia’s competitive cereal market while promoting innovation and long-term cooperation between the two nations. 

Cereals Canada welcomed the signing, calling it an important milestone for Canadian agriculture and agri-food. “The conclusion of the CEPA negotiations between Canada and Indonesia marks a significant milestone for Canada’s agriculture and agri-food sector,” said Dean Dias, chief executive officer at Cereals Canada. “We applaud the government’s commitment to expanding market access and creating new opportunities for Canadian grain farmers and exporters.” 

A key feature of this agreement is the inclusion of a comprehensive agricultural biotechnology provision, a first for Indonesia in any trade pact. This will encourage innovation and make it easier for Canadian farmers to use advanced technology to improve crop yields.  

The deal also provides broad tariff elimination for Canadian agricultural exports, including cereals, and sets clear sanitary, phytosanitary, and technical trade rules to ensure smooth and safe food trade. 

Indonesia is one of the world’s largest markets for non-durum wheat and stands as Canada’s second-largest market for that crop. In 2024 alone, Canada supplied 2.4 million tonnes of non-durum wheat to Indonesia, valued at $934 million. Indonesia is also an important market for Canadian durum wheat, which continues to see steady demand. 

With a long history of supplying wheat and durum to Indonesian millers, Canadian grain exporters expect the agreement to create lasting growth and deeper cooperation.  

“With our long history of supplying wheat and durum to Indonesian millers, Cereals Canada was supportive of the negotiations toward an agreement,” said Dias. “We expect this new agreement to set the stage for future growth and cooperation. The Canadian cereals sector looks forward to continuing our strong ties with Indonesia.” 

The CEPA sets the stage for increased trade, supports farmers, and highlights Canada’s leadership in agricultural technology and high-quality grain production. 

Photo Credit: istock-zhaojiankang