The culmination of trade talks with Indonesia should eventually translate into plenty of opportunity for Canadian agriculture, trade and commodity groups say.
Prime Minister Justin Trudeau and his Indonesian counterpart, President Prabowo Subianto, last week announced the substantive conclusion of trade talks that are expected to lead to a formal deal between the two countries in 2025.
The world’s fourth largest country by population and with a GDP of close to $1.9 trillion, Indonesia is Canada’s largest export market in Southeast Asia, and a key destination for Canadian agricultural products, as well as manufactured goods, and natural resources. The deal is expected to eliminate or reduce tariff and non-tariff barriers, enhance Canadian access to Southeast Asian supply chains, and establish a more transparent and predictable environment for trade and investment.
According to the Canadian Agri-Food Trade Alliance (CAFTA), Indonesia imported a total of C$37.9 billion worth agri-food and seafood products in 2023. Canada was Indonesia's eighth largest supplier at $1.6 billion, accounting for 4.3% of the market.