Canada Eyes Free Trade Agreement with Indonesia, ASEAN

TheIndonesia.id - Canada’s Minister of Foreign Affairs has revealed that the country has kick-started discussion with Indonesia on a bilateral free trade agreement as it’s also eyeing similar agreement with ASEAN.

In an official visit to Jakarta, Minister Melanie Joly met her Indonesian counterpart Retno Marsudi where they discussed bilateral economic issues, among other things.

“In my bilateral meeting with Minister Joly, I raised a number of bilateral and international issues of common concern. On bilateral relation, I focused the discussion on economic cooperation. We welcome increasing bilateral trade even amidst the pandemic,” Marsudi said on Monday, April 11.

According to her, bilateral trade between Indonesia and Canada increased by 30 percent to US$3.12 billion in 2021. And in order to further encourage trade, the two countries started free trade negotiation last month.

“To further strengthen bilateral trade, we started the first round of negotiation for the Comprehensive Economic Partnership Agreement, or CEPA, last month. We agreed to intensify negotiation to be concluded within a clear time frame,” Marsudi added.

On investment, she said, there was a slight increase of four percent in 2021.

Canada is reported to have been involved in a number of infrastructural projects, including the construction of Cikopo-Palimanan toll road in West Java and Gresik Port in East Java.

Furthermore, the Indonesian government also expected more investment on renewable energy and green infrastructure through the Indonesia Investment Authority.

Indonesia also supports the discussion between PT Timah and Canada Rare Earth Corporation to establish a joint venture.

Speaking after the meeting, Joly said Indonesia is an important partner for Canada, hence the importance of CEPA discussion.

“For Canada, Indonesia is a focal point of enhanced trade and economic engagement with the region,” she commented.

“Canada and Indonesia are pursuing a CEPA, which is a free trade agreement between our countries, and the launch of negotiations toward a Canada-ASEAN free trade agreement in the next few years.”

During her visit, Joly also met President Joko Widodo where they discussed Indonesia’s G20 presidency.