On May 6, 2026, Parliament approved Bill C-18, An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia.
The Act provides the legislative authority to implement the Canada-Indonesia agreement, which aims to:
- establish a free trade area in accordance with the Agreement;
- promote, through the expansion of reciprocal trade, the harmonious development of economic relations between Canada and Indonesia in order to create opportunities for economic growth;
- provide for a predictable framework for business planning and investment;
- promote fair competition in trade between Canada and Indonesia;
- substantially increase investment opportunities in Canada and Indonesia, while preserving the right of each party to the Agreement to regulate to achieve legitimate policy goals;
- reduce or eliminate barriers to trade in goods and services in order to contribute to the harmonious development and expansion of trade;
- seek to ensure that the benefits and opportunities created by the Agreement are widely shared;
- support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by the Agreement;
- promote environmental protection, including through effective enforcement of environmental laws, mutually supportive trade and environmental policies and practices, and strengthened environmental cooperation between Canada and Indonesia;
- promote the protection and enforcement of labour rights and the improvement of working conditions;
- encourage enterprises operating within Canada or Indonesia or subject to their jurisdiction to respect internationally recognized corporate social responsibility and responsible business conduct standards and principles;
- promote sustainable development;
- promote transparency, good governance and the rule of law, while strengthening commitments to combat bribery and corruption in trade and investment;
- recognize the importance of increased engagement by Indigenous Peoples in trade and investment and facilitate such engagement; and
- recognize the right of the parties to the Agreement to adopt or maintain measures with respect to cultural industries in accordance with the rights and obligations provided for in the Agreement.
Among other things, the Act updates the Customs Tariff by adding references to the Indonesia Tariff (IDT) and making corresponding amendments to include reference to the CPUKT through the rest of the Tariff and its schedules.
The coming into force date for the Act will be fixed by the Governor in Council.