By Alice McFarlane

Canada’s new agreement with Indonesia opens doors for agricultural trade

Dec 9, 2024 | 5:19 PM

The recent signing of the Comprehensive Economic Partnership Agreement (CEPA) between Canada and Indonesia will benefit Canadian beef sector and the cereals industry.

During the Team Canada Trade Mission to Indonesia, Canada’s Minister of International Trade signed a Memorandum of Understanding (MOU) between Canada and Indonesia to establish a bilateral dialogue on sanitary and phytosanitary issues to address market access for the trade in Canadian beef. CCA joined the Minister’s trade delegation in Indonesia and was present for the signing, according to CCA President Nathan Phinney.

“Canadian negotiators worked tirelessly to secure comprehensive tariff free access for Canadian beef and to address challenges for the Canadian beef sector. We thank the Government of Canada negotiating team for the positive outcomes of both CEPA and the MOU specific to beef,” Phinney said.

CCA also welcomed the provisions on import licensing, which will provide more transparency and predictability for the Canadian beef sector.

The Canadian Meat Council (CMC) said the landmark agreement represented a significant opportunity for Canada’s meat industry to expand its presence in one of the largest and fastest-growing markets in the Indo-Pacific region.

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Since Canada’s exclusion from China, CMC advocated for new beef market access, leading engagements with Indonesian government officials and key stakeholders in Jakarta since 2022.

Indonesia, with its population of 279 million and GDP of nearly $1.9 trillion, offers significant potential for Canadian Moving forward, it will be essential to ensure that market access requirements, including halal certifications, and industry food safety audits are addressed promptly to facilitate commercially viable access.

The Canadian Pork Council remains eager to find ways to serve this market as well with high quality Canadian pork, all while respecting cultural traditions.

Cereals Canada said the agreement, which takes effect in 2026, will help to promote growth, benefitting the Canadian cereals industry and strengthening Canada’s position in the Indonesian market.

Cereals Canada chief executive officer Dean Dias said this marks a significant milestone for Canada’s agriculture and agri-food sector.

“We applaud the government’s commitment to expanding market access and creating new opportunities for Canadian grain farmers and exporters,” Dias said.

One of the key benefits included in the agreement is a comprehensive provision on agricultural biotechnology, a first for Indonesia in a trade agreement. The agreement also includes a broad tariff elimination for Canadian agricultural exports, including cereals, and sets guidelines for sanitary and phytosanitary regulations and other technical rules of trade.

Currently, Indonesia is Canada’s second largest market for non-durum wheat. In 2023, Indonesia purchased 2.4 million tonnes of Canadian non-durum wheat, valued at $1.1 billion. Indonesia is also a market for Canadian durum.

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW