Order Fixing the Date of Entry into Force of the Comprehensive Economic Partnership Agreement between Canada and Indonesia as the Day on Which the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act Comes into Force: SI/2026-30

Canada Gazette, Part II, Volume 160, Number 13

Registration
SI/2026-30 July 1, 2026

CANADA–INDONESIA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT IMPLEMENTATION ACT

Order Fixing the Date of Entry into Force of the Comprehensive Economic Partnership Agreement between Canada and Indonesia as the Day on Which the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act Comes into Force

P.C. 2026-601 June 12, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister for International Trade, under section 45 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act, chapter 8 of the Statutes of Canada, 2026, fixes the date of entry into force of the Comprehensive Economic Partnership Agreement between Canada and Indonesia as the day on which that Act comes into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Pursuant to section 45 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Act (the Act), this Order fixes the date of entry into force of the Comprehensive Economic Partnership Agreement between Canada and Indonesia (CEPA) as the day on which the Act comes into force.

Objective

The objective of this Order is to bring into force the provisions of the Act that are necessary to implement the CEPA.

Background

CEPA negotiations launched on June 20, 2021. The CEPA was signed by Canada and Indonesia in Ottawa on September 24, 2025.

The CEPA is a comprehensive trade agreement covering, among other areas, trade in goods, trade in services, investment, labour, and environment. The CEPA comes at a critical time when Canadian businesses are seeking to diversify their exports and enter new markets. It represents the most ambitious comprehensive trade agreement Indonesia has signed to date. Once in force, the CEPA will reinforce Government of Canada’s priorities on trade diversification and the commitment to an open and inclusive rules-based international trading system, as outlined in policy instruments such as the Prime Minister’s Mandate Letter to the 30th Ministry, the 2025 Speech from the Throne, Budget 2025, and Canada’s Indo-Pacific Strategy.

The Act was introduced as Bill C-18 in Parliament on December 11, 2025, and received royal assent on May 6, 2026.

Implications

Once in force, the Act will implement Canada’s commitments under the CEPA. Specifically, the Act will, among other things,

Policies

The Prime Minister’s Mandate Letter to the 30th Ministry identifies strengthening our collaboration with reliable trading partners and allies around the world as a top priority. The 2025 Speech from the Throne notes that “the Government is working to strengthen its relationships with reliable trading partners and allies around the world.” Federal Budget 2025 sets a goal to double Canada’s non-U.S. exports over the next decade and commits to strengthening ties in the Indo-Pacific. The entry into force of the CEPA is one of the key deliverables under the second pillar (expanding trade, investment, and supply chain resilience) of Canada’s Indo-Pacific Strategy.

Implementation

Bringing the Act into force will also enable Canada to bring the CEPA into force in international law. Pursuant to article 26.3 of the CEPA, the Agreement enters into force following the exchange of diplomatic notes between Canada and Indonesia notifying the completion of its respective internal legal procedures for the entry into force of the CEPA. The CEPA will enter into force on the first day of the second month following the latter notification.

The CEPA will provide meaningful market access for Canadian businesses and serve as a building block for future modernizations. The CEPA will open a new market in the Indo-Pacific without any concessions on supply-managed agriculture sectors, while preserving Canada’s domestic ability to adopt or maintain measures in key areas, such as public health and safety. The CEPA will also cement Canada’s partnership with Indonesia and support Canada’s objectives in the Indo-Pacific outlined in Canada’s Indo-Pacific Strategy (2022), including the objective of expanding trade, investment, and supply chain resilience.

Financial impacts

Costs to the Government of Canada associated with the implementation of the CEPA are funded within existing resources by Global Affairs Canada (GAC) and other relevant departments or agencies.

Based on trade patterns from 2022 to 2024, revenues forgone through the elimination of Canada’s customs duties for goods originating from Indonesia are estimated to be $125 million per year once the CEPA is in force. Since the CEPA was signed, economic modelling projects that the CEPA will increase Canada’s annual exports to Indonesia by $173 million and increase Canada’s annual gross domestic product by $226 million.

Federal-provincial-territorial impacts

Implementation of treaty obligations often engages provincial and territorial legislative assemblies and requires ongoing cooperation between the federal government and provincial and territorial governments. This engagement is a standard feature of Canada’s trade negotiations and trade agreement implementation processes. Provinces and territories were regularly briefed during the negotiations (through GAC’s regular consultation mechanism, “C-Trade,” after every negotiating round, and on request), had access to the signed text, and were briefed on the negotiated outcomes following the conclusion of the negotiations. Provinces and territories are supportive of the implementation of the CEPA.

Consultation

From January 9 to February 23, 2021, the Government of Canada held public consultations to receive the views of Canadians on a possible CEPA. GAC received submissions from, and conducted targeted outreach with a wide variety of domestic interlocutors, including provinces and territories, business, labour unions, Indigenous groups, and small and medium-sized enterprises. Overall, a high level of support for a CEPA was expressed, highlighting the benefits of increased trade with Indonesia and the potential opportunities in this fast-growing market and in the Indo-Pacific region more generally. Submissions indicating support for a CEPA cited the significant market potential that could be facilitated by reducing tariff and non-tariff barriers such as trade inhibiting regulatory practices, lack of transparency, investment and import restrictions, intellectual property protection, data localization requirements, and investor protection. However, some stakeholders expressed concerns related to ensuring fair competition; Indonesia’s record on human rights, corruption, labour, and environmental issues; and the associated impacts on Canada’s domestic manufacturing competitiveness. Provisions on state-owned enterprises, environment, anti-corruption, and enforceable labour provisions have been included in the CEPA to help mitigate these concerns.

Stakeholders received updates after each negotiating round via virtual debriefs from Canada’s Chief Negotiator or public reports published on GAC’s website. Targeted debriefs were also provided to provinces and territories, Indigenous partners, and stakeholders with specific interests.

During the legislative process in the House and Senate, parliamentarians and senators received technical briefings on the CEPA and its implementing legislation. Relevant committees in both the House and Senate also reviewed and approved the legislation after holding hearings that included stakeholder representation by organizations and individuals with expertise or interest in the subject matter. Parliamentarians acknowledged the importance of the Act and the treaty in advancing Canada’s trade diversification objectives and highlighted the benefits of the CEPA to Canadian business. Some of the concerns raised by Parliamentarians included a perceived lack of human rights, labour, and environmental protections in the treaty text, the importance of prioritizing work on the review of the Canada-United States-Mexico Agreement (CUSMA) with the United States, concerns regarding transparency in the treaty-making process and Parliament’s role within it, and the need for improved domestic infrastructure and reduced red tape to support expanded trade.

Contact

Darren Smith
Executive Director
Indo-Pacific Trade Policy Division
Global Affairs Canada
Email: darren.smith@international.gc.ca