Summary#

This bill would put into force a new trade deal between Canada and Indonesia. Its goal is to lower tariffs (import taxes), set clear trade rules, and support fair labour and environmental standards. It also creates ways to solve disputes and check on how the deal is working over time.

• Approves the Canada–Indonesia Comprehensive Economic Partnership Agreement and makes it part of Canadian law.
• Creates an “Indonesia Tariff” that cuts or removes tariffs on most goods from Indonesia, many right away and others over 5, 10, or up to 15 years. Some sensitive goods are excluded.
• Updates customs, trade tribunal, and other laws so businesses can claim the new tariff and follow the deal’s rules of origin and paperwork.
• Lets the government use temporary “safeguards” if a surge of Indonesian imports harms Canadian producers, including pausing tariff cuts or adding short-term duties after an inquiry.
• Requires the Trade Minister to make sure Canadian companies in Indonesia follow responsible business conduct principles, set up a public complaints process, and publish a yearly report.
• Commits both countries to protect labour rights and the environment, recognizes Indigenous participation in trade, protects cultural industries, and states the deal does not apply to water.
• The law will take effect on a date set by the federal government.

What it means for you#

• Consumers

  • Many everyday items from Indonesia could get cheaper over time as tariffs fall, such as clothing, some footwear, household goods, and certain foods.
  • Some items may stay the same price if they are excluded or if cuts take many years.

• Workers and domestic producers

  • Some sectors may face more competition from Indonesian imports. If this causes serious injury to Canadian producers, industry can ask the trade tribunal to investigate. The government can pause tariff cuts or add temporary duties.
  • Clearer, more predictable rules for exporting to Indonesia may help businesses grow sales abroad.

• Small and medium-sized businesses

  • Lower tariffs and simpler paperwork can make importing from and exporting to Indonesia easier.
  • The agreement aims to help smaller firms take part in trade. However, firms must still meet rules of origin and keep records.

• Importers and exporters

  • A new “Indonesia Tariff” is available for goods that “originate” in Indonesia. Importers, exporters, or producers can certify origin using prescribed forms and must keep supporting documents.
  • Many tariff cuts begin at once; others phase in over 5, 10, or up to 15 years, depending on the product.
  • Some goods are excluded from preferences and will not get the Indonesia Tariff.

• Investors and service providers

  • More stable, transparent rules for investment and services. There is a process to resolve disputes under the agreement.

• Communities and civil society

  • The deal includes chapters on labour rights and the environment and encourages strong corporate social responsibility.
  • Anyone can file a complaint with the Trade Minister about a Canadian company’s conduct in Indonesia. The Minister must respond and report annually.

• Indigenous Peoples and cultural sectors

  • The agreement recognizes the importance of Indigenous participation in trade.
  • Cultural industries remain protected.

Expenses#

No publicly available information.

Proponents' View#

• Will lower costs for consumers and help Canadian exporters reach a fast‑growing market of over 270 million people.
• Diversifies trade in the Indo‑Pacific, reducing reliance on a few partners and making Canada’s economy more resilient.
• Gives small businesses clearer rules, simpler origin certification, and new opportunities as tariffs drop.
• Includes labour and environmental commitments, plus a new complaints process for responsible business conduct by Canadian firms abroad.
• Builds a predictable framework for services and investment, which can attract new projects and jobs in Canada.
• Includes transparent review every three years so Parliament can assess impacts and recommend changes.

Opponents' View#

• Some Canadian farmers, food processors, and manufacturers could face tougher import competition, risking jobs in vulnerable sectors.
• Labour and environmental promises may be hard to enforce in practice; oversight of company conduct could lack strong penalties.
• Investor‑state or arbitration features may give foreign investors special avenues to challenge public policies.
• The government can change how some laws apply to Indonesia by order, which critics say reduces parliamentary oversight.
• Smaller firms may find rules of origin and paperwork burdensome despite tariff cuts.
• Tariff reductions could lower federal customs revenue, while administration of committees, panels, and reporting adds costs.