Summary#

• This bill brings the Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA) into Canadian law. Its goal is to lower trade barriers, set clear rules for business and investment, and include standards on labour, the environment, and responsible business conduct.
• It creates a new “Indonesia Tariff” (IDT) so most duties on goods from Indonesia drop to zero over time. Some sensitive goods get no new preference.
• It sets up emergency “safeguards” so Canada can pause tariff cuts or add temporary duties if a surge of Indonesian imports seriously harms Canadian producers.
• It requires the trade minister to make sure Canadian companies in Indonesia follow international responsibility guidelines, with a public complaints process and yearly reports.
• It updates border paperwork (rules of origin certification), lets the government manage disputes and committees under the deal, and requires a full review every three years.
• The agreement does not apply to water in its natural state. The act takes effect on a date the federal cabinet sets.

Key changes and impacts:

• Approves the Canada–Indonesia CEPA and aligns several federal laws with it.
• Creates the Indonesia Tariff with staged duty cuts (some items free right away; others phase to zero over about 5, 10, or 15 years).
• Adds tools to retaliate or suspend benefits if Indonesia breaks the deal.
• Limits lawsuits in Canadian courts based on the agreement unless the federal government consents.
• Requires a complaints system and annual reporting on Canadian firms’ conduct in Indonesia.

What it means for you#

• Consumers

  • Many imported items from Indonesia (such as clothing, shoes, household goods, some electronics, and processed foods) may become cheaper as tariffs drop.
  • Some protected items (for example, many dairy and poultry products and certain footwear or vehicle items) see no new tariff cuts.

• Importers and retailers

  • You can claim the new Indonesia Tariff if goods meet the “rules of origin” and you keep proper proof. Self-certification of origin is allowed (similar to other trade deals), but you must correct any errors you find.
  • Over time, lower duties can reduce landed costs and expand product choices. Some lines drop to zero right away; others phase out.

• Canadian exporters and investors

  • More predictable access to Indonesia’s market, with clearer rules for goods, services, and investment.
  • Formal committees and dispute channels aim to resolve problems faster.
  • Canadian firms operating in Indonesia must follow international responsible business conduct principles; complaints can be filed against them.

• Farmers and food processors

  • Some Indonesian food imports will face lower or zero tariffs, which can raise competition in certain products.
  • Sensitive Canadian sectors remain shielded where no preference applies. Emergency safeguards are available if import surges cause serious injury.

• Manufacturers and apparel/footwear

  • More competition from lower-cost Indonesian goods as tariffs fall, especially in textiles, apparel, luggage, and some consumer goods.
  • Safeguard tools exist if imports from Indonesia become a principal cause of serious injury.

• Workers

  • Possible job gains in export industries that sell more to Indonesia; possible pressure in industries competing with new imports.
  • The deal includes labour-rights commitments and a council to address concerns, but day-to-day enforcement remains a policy matter.

• Small and Indigenous businesses

  • The agreement highlights support for small and medium-sized enterprises and recognizes the importance of Indigenous participation in trade. Practical benefits depend on uptake of programs.

• Civil society

  • Environmental, labour, anti-corruption, and responsible business chapters create forums to raise concerns. The minister must run a complaints process about Canadian firms’ conduct in Indonesia and publish annual summaries.

Expenses#

Estimated annual cost: No publicly available information.

• The government must pay Canada’s share of the CEPA committees and dispute panels, and cover panelist and administration costs.
• Creating and running the company-conduct complaints process and annual reports will add ongoing administrative costs.
• Cutting tariffs on Indonesian goods reduces customs duty revenue on those goods.
• Emergency safeguard duties, if used, could temporarily increase customs revenue and protect domestic producers.

Proponents' View#

• Will open a fast-growing market to Canadian goods and services, helping exporters plan and invest with clearer, more stable rules.
• Lowers or ends tariffs on most Indonesian imports, which can reduce prices for Canadian consumers and input costs for businesses.
• Includes modern chapters on labour rights, the environment, anti-corruption, and responsible business conduct, raising standards.
• Provides safeguard tools to protect Canadian industries if import surges cause serious injury.
• Highlights support for small businesses and recognizes Indigenous participation in trade.
• Keeps Canada’s right to regulate in the public interest, including culture and water protections.

Opponents' View#

• Lower tariffs may increase import competition and pressure certain Canadian sectors (for example, textiles, apparel, some foods), risking jobs.
• Labour and environmental promises may be hard to enforce in practice, leading to limited on-the-ground change.
• Responsible business rules rely on guidelines and a complaints process; critics may view this as weaker than binding legal duties.
• Reduced customs duties mean less federal revenue from Indonesian imports.
• Limits on using Canadian courts to enforce the agreement may leave individuals without a direct legal path at home.
• Even with safeguards, responding to harmful import surges can be slow, and some injuries to producers may be hard to undo.