Ottawa-The conclusion of negotiations for the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) is being welcomed by the Canadian Meat Council (CMC), the Canadian Cattle Association (CCA), Canadian Pork Council (CPC), Cereals Canada and SoyCanada.

The agreement will help the export meat sector expand its presence in one of the largest and fastest-growing markets in the Indo-Pacific region, CMC said. Indonesia, with its population of 279 million and GDP of nearly $1.9 trillion, offers significant potential for Canadian meat exporters.

CMC looks forward to the swift implementation of the CEPA and remains committed to supporting the government in ensuring this agreement delivers tangible benefits for businesses and communities. “We look forward to working alongside like-minded partners to drive the success of this ambitious partnership.”

The groups welcomed a robust Sanitary and Phytosanitary (SPS) Chapter in the agreement, which will be enforced by its dispute settlement mechanism and the creation of an ongoing SPS Dialogue to allow transparency and prevent SPS requirement from becoming non-tariff barriers. 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.

Since Canada was blocked from exporting meat to China, CMC has proactively advocated for new meat access to Indonesia and discussions began in 2022. The agreement will enhance the agrifood industry's competitiveness and open new avenues for growth.

CCA President Nathan Phinney said “Canadian negotiators worked tirelessly to secure comprehensive tariff free access for Canadian beef and to address challenges for the Canadian beef sector.” He welcomed provisions on import licensing, which will provide more transparency and predictability for the Canadian beef sector.

The global demand for beef is increasing and there is growing momentum for Canada in the Indo-Pacific region, Phinney said. During the trade mission, CCA took part in market visits and heard directly from retailers that their customers are looking for high quality grain finished beef.

CCA said it looks forward to the CEPA coming into force, as it will provide further market diversification and opportunities for Canadian beef producers to compete globally and find new markets for our high-quality beef.

CPC said it remains eager to find ways to serve Indonesia with high quality Canadian pork, all while respecting cultural traditions. The CEPA includes provisions that align with our industry's commitment to sustainable and inclusive growth. By fostering more and better trade, the agreement will contribute to building resilient supply chains, which are crucial in today's volatile global market.

Cereals Canada applauds the recent signing of the Comprehensive Economic Partnership Agreement (CEPA) between Canada and Indonesia. The agreement, which takes effect in 2026, will help to promote innovation and growth, benefitting the Canadian cereals industry and strengthening Canada’s position in the Indonesian market.

Dean Dias, CEO at Cereals Canada, said the agreement “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.”

One of the key benefits included in the agreement is a comprehensive provision on agricultural biotechnology, a first for Indonesia in a trade agreement. Currently, Indonesia is Canada’s second largest market for non-durum wheat and is also a market for Canadian durum.

“We expect this new agreement to set the stage for future growth and cooperation. The Canadian cereals sector looks forward to continuing our strong ties with Indonesia,” Dias said.

Brian Innes, Executive Director of Soy Canada, said the potential new trade opportunities are fantastic “especially given the protectionist headwinds dominating the news cycle in North America.”

As soy exports to Indonesia have grown, the risk of tariff and non-tariff barriers related to plant health and seed regulations have also increased. Working with members, Soy Canada has highlighted to Canadian negotiators how an agreement would be beneficial for the soybean industry if it eliminates tariffs on soybeans and soy products and implements measures to reduce the risk of non-tariff barriers.

Indonesia represents the fifth largest soybean export market for Canadian soy, with exports reaching $210 million in 2023, up from an average of $134 million from 2018-2022. Canada’s soybeans are in demand from Indonesian food manufacturers who primarily use them to make soy milk and tempeh. 

International Trade Minister Mary Ng has led a recent Team Canada trade mission to Indonesia and the Philippines. It included 300 representatives from more than 190 companies and organizations aiming to connect with key government and industry leaders to take advantage of new business opportunities.

This news item prepared for National Newswatch