| President Jokowi receives visit from Canadian Prime Minister Justin Trudeau at Merdeka Palace | photo: @setkab |
gThe rapid movement between the Republic of Indonesia and Canada issued a statement from the leader regarding the acceleration of negotiations on the Comprehensive Economic Partnership Agreement between the two countries (Indonesia-Canada Comprehensive Economic Partnership Agreement, or ICA-CEPA).
Through this joint declaration, the two countries committed themselves to accelerating the completion of the ICA-CEPA negotiations. The Head of State’s statement was released on Tuesday (05/09/2023) during a bilateral meeting between Indonesian President Joko Widodo (Jokowi) and Canadian Prime Minister Justin Trudeau in Jakarta.
The two men met on the sidelines of a series of meetings during the ASEAN summit from September 5-7, 2023 in Jakarta.
Indonesian Commerce Minister Zulkifli Hasan said Indonesia and Canada would enjoy immediate trade benefits if the ICA-CEPA negotiations were quickly concluded.
“The two heads of state are determined to press for the ICA-CEPA negotiations to be concluded soon. Indonesia and Canada will benefit more quickly from the ICA-CEPA bilateral agreement if the negotiations are completed quickly,” said Trade Minister Zulkifli Hasan in his speech. written statement, Thursday (7/9/2023).
One of the important points of the declaration of the heads of state is the commitment of the two parties to accelerate the round of negotiations. For this reason, negotiating teams from both countries have been mandated to conduct intensive rounds of negotiations to maintain the momentum of the negotiations. Intensive negotiations also aim for the two countries to reach a substantial agreement by the end of 2024.
In addition, the two Heads of State understood that a comprehensive and high-quality trade agreement would be able to increase trade and investment, increase commitment to open rules-based trade , to support long-term inclusive economic growth and support employment. creation.
Cooperation between the two countries under the CEPA program will help achieve common goals and enhance sustainable growth and development.
The ICA-CEPA negotiations took place over five rounds. The fifth round took place from May 29 to June 2, 2023 in Ottawa, Canada. After the fifth round, the two negotiating teams often held intercessory meetings to discuss all negotiation issues.
One of the reasons is to pursue the objective of completing the negotiations. The Indonesian and Canadian negotiating teams are preparing for the sixth round which is expected to take place in October 2023.
Regarding trade between Indonesia and Canada, in the period January-June 2023, Indonesia’s total trade with Canada reached $1.82 billion. Indonesian exports were recorded at USD 575 million and Indonesian imports at USD 1.24 billion. Meanwhile, in 2022, Indonesia’s total trade with Canada will be $4.27 billion.
There is an increasing trend in total trade over the last five years (2018-2022), up to 10.78 percent. Indonesian exports to Canada in 2022 were recorded at USD 1.27 billion and Indonesian imports from Canada were USD 2.99 billion.
Indonesia’s main export products to Canada include rubber and rubber articles, knitted articles, footwear, garments, and electrical machinery and equipment. Meanwhile, major Indonesian imports from Canada include fertilizers, wheat variants, wood pulp, oilseeds, as well as mechanical machinery and aircraft.
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