Trade Pact Agreement Between Canada and Indonesia Will Explore Collaboration In Nuclear Energy

Trade Pact Agreement Between Canada and Indonesia Will Explore Collaboration In Nuclear Energy

Canada and Indonesia have signed the Comprehensive Economic Partnership Agreement (CEPA) trade pact, which is a significant step in the trade relationship between the two countries. The deal was signed after 2.5 years of negotiations and will be effective in 2026.

Expanding Market Access for Indonesian Goods

This trade pact is good news for Indonesia as its goods will get preferential treatment in the Canadian market. Sectors like telecommunications, construction, and tourism will benefit from this deal. Multilateral trade is important amidst global challenges like rising protectionism and geopolitical tensions. Canada is also proposing collaboration on nuclear energy in Southeast Asia, addressing the region’s growing energy demands, particularly for powering artificial intelligence and other high-tech industries.

Indonesia and Canada view nuclear energy as a forward-looking solution for economic and environmental challenges. This pact also aligns with Canada’s Indo-Pacific Strategy, which aims to counterbalance China’s regional influence while fostering sustainable growth. In 2023, bilateral merchandise trade between the two nations totaled $5.1 billion, reflecting Indonesia’s status as Canada’s largest export market in Southeast Asia.

The CEPA trade pact will deepen economic ties between Canada and Indonesia, a milestone in advancing digital trade, renewable energy, and sustainable development.