Canada-Indonesia Comprehensive Economic Partnership Agreement Implementation Bill
Third Reading
May 5, 2026
Moved third reading of Bill C-18, An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia.
He said: Honourable senators, I rise today as the Senate sponsor of Bill C-18, An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia.
This comprehensive economic partnership agreement aims to broaden Canada’s economic horizons and establish a lasting partnership with the world’s third-largest democracy and one of the most dynamic regions in Asia.
Before I continue, I would like to acknowledge the work of our colleagues on the Standing Senate Committee on Foreign Affairs and International Trade, chaired by Senator Boehm, who examined the bill.
During their study, in which I participated, the committee heard from witnesses representing the business community, trade unions and the agricultural sector. We also heard the Minister of International Trade’s perspective.
Honourable senators, trade has always been a cornerstone of Canada’s prosperity because it support millions of jobs and enables Canadian businesses large and small to grow and, above all, create wealth in this country.
The Canada-Indonesia Comprehensive Economic Partnership Agreement will contribute to achieving these objectives in a concrete and forward-looking manner.
For the sake of efficiency, I won’t revisit all the points I discussed with you during my second-reading speech, so I’ll be brief. This won’t take 45 minutes.
However, let me remind you that Indonesia is the largest economy in Southeast Asia and that it has a large middle class with a strong potential for long-term growth.
As I mentioned in my speech at second reading, Jakarta, Indonesia’s capital, has become the most populated city in the world with over 42 million inhabitants, the equivalent of Canada’s population.
This agreement gives Canadian exporters, service providers and investors better and more predictable access to the Indonesian market, which has over 280 million consumers.
By reducing tariffs, removing non-tariff barriers and improving regulatory transparency and cooperation, the Canada-Indonesia Comprehensive Economic Partnership Agreement helps Canadian businesses compete with their rivals on a level playing field and positions them to succeed in a market that will grow even bigger in the decades to come.
This agreement also matters because of what it represents for Indonesia. This is the most ambitious trade agreement that Indonesia has ever signed and its first comprehensive trade agreement with a North American partner.
That fact alone is significant. It speaks to Indonesia’s confidence in Canada as a trusted, reliable and long-term partner. It also reflects Indonesia’s broader economic evolution and its desire to integrate more deeply into the global, rules-based trading system.
One of the clearest examples of this increased ambition can be found in the area of labour. For the first time in its trade policy history, Indonesia has made enforceable labour commitments in a trade agreement.
In the Canada-Indonesia Comprehensive Economic Partnership Agreement, or CEPA, both countries commit to upholding and effectively enforcing internationally recognized labour rights in their domestic laws. The agreement prohibits lowering labour standards to attract trade or investment and includes mechanisms to address issues such as forced labour and violence against workers.
These commitments are binding and enforceable, backed by dispute settlement. For Canada, this is important. It helps ensure fair competition, supports decent work and reinforces the principle that trade should raise standards, not undermine them.
The Canada-Indonesia CEPA also reflects modern expectations around sustainability, inclusive growth and responsible business conduct.
This agreement could not have come at a more opportune time, as the uncertainty weighing on global trade continues to redefine long-standing alliances and give rise to new partnerships.
Colleagues, as Senator Housakos pointed out in his speech at second reading, the United States will always remain an important trading partner for Canada. In the current context, however, we know more than ever that Canada needs to rethink its place in the global economy.
With a view to reducing this dependence on our partner south of the border, I would like to reiterate that this government is committed to doubling Canadian exports to markets outside the United States over the next decade. This ambitious vision is aimed specifically at strengthening Canada’s long-term economic resilience.
Time will tell whether the government will be able to achieve this goal, but Statistics Canada released figures on international trade this morning. After rising 10% in February, exports to countries other than the United States increased by 9% in March. The United States’ share of international trade currently stands at a historic 66%, which is unprecedented. It appears that the government is on track to meet its goal.
The Canada-Indonesia Comprehensive Economic Partnership Agreement is a clear and essential step toward meeting this objective. It strengthens Canada’s presence in the Indo-Pacific region and diversifies the markets on which our prosperity depends.
I would also like to echo the comments made by Senator Woo at second reading. He very rightly pointed out that this agreement between Canada and Indonesia is not just about tariff reductions. It seeks to build trust between our two countries and lay the foundation for strengthening bilateral relations in a wide range of areas.
Of course, trade agreements only deliver results if businesses are able to make use of them.
The implementation of the Canada-Indonesia partnership agreement will be supported by a whole-of-government approach that combines trade promotion, on-the-ground support and close cooperation with Canadian businesses.
We have seen encouraging signs that the government is taking the implementation of the agreement seriously. In fact, the Canadian embassy in Indonesia has already set up a working group on the agreement that brings together chambers of commerce and leading trade organizations to coordinate promotional activities.
Once in force, the agreement will be integrated into Canada’s existing trade promotion ecosystem, which includes the Trade Commissioner Service, regional offices across Canada, trade missions at home and abroad and Canada’s broader engagement in Southeast Asia.
Canadian exporters and investors will be able to leverage the vast network of the Trade Commissioner Service in Indonesia and in the region to receive practical advice on market penetration, regulatory requirements and partnership opportunities.
Officials will receive targeted training and orientation sessions to ensure that they are equipped to effectively advise Canadian clients, resolve market access issues and promote the use of the agreement.
In addition, Canada will support practical implementation of the agreement through an economic and technical cooperation program, which will help build the institutional and technical capacity needed to meet commitments and ensure smooth market access for Canadians.
Ongoing collaboration through the agreement’s institutional committees will allow both parties to monitor its implementation, address challenges as they arise and ensure that the agreement delivers tangible benefits.
Promotional efforts will be equally proactive. A schedule of trade events, workshops and information sessions on the agreement at major trade fairs will raise awareness of the agreement among Indonesian and Canadian businesses.
All of these efforts about to be undertaken by the government send a clear message: This agreement is designed to be used by Canadian businesses for the benefit of Canadians, not to gather dust on a shelf.
That said, allow me to commend a comment made by Senator Harder and included in the report of the Standing Senate Committee on Foreign Affairs and International Trade, which urges the government to ensure that the foreign service has all the necessary resources to take full advantage of this agreement.
I know that my colleagues on the Standing Senate Committee on Foreign Affairs and International Trade and I, as the new co‑chair of the Canada-Indonesia Interparliamentary Friendship Group, will be following the implementation of this agreement with great interest.
In closing, it is important to remember that this Canada-Indonesia CEPA is an agreement for today and for the future.
It guarantees Canadian businesses access to a market of more than 280 million consumers and strengthens our collaboration with a key player within ASEAN, which, most importantly, is the world’s third-largest democracy.
For all the reasons put forward by my colleagues, I urge you to support the passage of Bill C-18.
Thank you. Meegwetch.
Honourable senators, I rise to speak to Bill C-18 on third reading, and I will be brief. Many of you already know my strongly held view that there has been a tradition in this place of giving extensive speeches, either at second or third reading, not at both. Therefore, I will keep to the point.
Conservatives support free trade. It doesn’t matter where or with whom. We have always believed that trade agreements are for the benefit of this country. I highlight that we prefer to make trade agreements with countries with which we have aligned values and principles that allow us, of course, to perform effectively. You cannot have effective free trade unless the two markets in question respect environmental guidelines, labour guidelines, human rights, financial standards, legal systems and the international rule of law. Usually that is a starting point.
For reasons related to political and economic expediency, we sometimes sign agreements with nefarious governments and countries around the world. That is not the case here. There is a lot of potential here for growth. Of course, the Asia-Pacific is a market in which we need to continue to expand our presence.
Of course, ratifications are a formality, both for parliaments and governments, in reality. All the heavy-duty nuts and bolts are negotiated by Global Affairs Canada, but implementation is where it either fails or succeeds. When we sign trade agreements with countries that are very different from our largest trading partner to the South, we must always be cognizant that inherent challenges fall into place.
It’s always easy for multinational Canadian corporations to make deals, expand marketplaces and try to benefit from these trade agreements anywhere in the world. It is a lot more complicated for small- and medium-sized enterprises, or SMEs, to do business in a place like Indonesia. When you open up market capacity in Ohio or Wisconsin, it doesn’t matter if you are small, medium or large; you have the capacity to benefit from it. When you are opening up markets like Indonesia, it is a whole different ball of wax. Obviously, it is a nice opportunity for the Bombardiers and SNCs of the world, as well as our large agricultural conglomerates, which are able to take advantage of some of these benefits. It is a lot more complicated if you are a mom-and-pop shop.
It is striking that the government committed a $25-million fund over five years to help Indonesian firms build capacity. On the other side of the equation, there was nothing available for SMEs on the Canadian side, which, going forward, is something that could be rectified. I encourage the government to do so.
Before I conclude, I also want to highlight that, even though we are completely in favour of diversification of trade — as I said in my second reading speech — we cannot underscore enough the importance of the Canada-United States-Mexico Agreement, or CUSMA. It is 75%, if not more, or our trade arrangement from an economic point of view. As much as the government likes politically expedient speeches like the one Prime Minister Carney gave in Yerevan a couple of days ago, our most important trading partner, political partner and security partner is still the United States of America. Despite our current short-term differences, we need to refocus and get that back on track as we continue to diversify in markets and sectors around the world.
On that point, I want to say that the opposition supports Bill C-18, and I call the question.
Are senators ready for the question?
Is it your pleasure, honourable senators, to adopt the motion?
Hon. Senators: Agreed.
(Motion agreed to and bill read third time and passed.)
