C-18 (45-1) - Canada-Indonesia Comprehensive Economic Partnership Agreement Implementation Act
Chamber
commons
Stage
3rd Reading
Introduced
Dec 11, 2025
Progress
This bill puts into Canadian law the free trade agreement signed between Canada and Indonesia in September 2025.
Key Changes
- Creates a new 'Indonesia Tariff' (IDT) in the Customs Tariff, giving qualifying Indonesian goods reduced or eliminated import duties, phased in over 5, 10, or 15 years depending on the product
- Amends the Customs Act to recognize Indonesia and the agreement for purposes of certificates of origin and preferential tariff treatment
- Amends the Investment Canada Act to apply the agreement's investment protections to Indonesian investors
- Establishes joint committees and administrative bodies to oversee implementation of the agreement, including environment and labour sub-committees
- Gives the Governor in Council power to suspend tariff benefits or impose emergency surtaxes on Indonesian goods if they cause serious injury to Canadian domestic producers
- Amends the Canadian International Trade Tribunal Act to allow domestic producers to file complaints and request inquiries specifically related to Indonesian imports under the new tariff
Gotchas
- Natural water (surface or groundwater in any form) is explicitly excluded from the agreement and this bill, meaning water resources cannot be treated as a tradeable commodity under this deal
- Private individuals and companies cannot independently sue to enforce rights under the agreement without the consent of the Attorney General of Canada, limiting direct legal recourse
- Some sensitive product categories — including many dairy, poultry, eggs, alcohol, sugar, and tobacco products — are listed in Schedule 1 as 'N/A,' meaning they are excluded from Indonesia Tariff benefits entirely
- Emergency safeguard measures allow Canada to temporarily reimpose higher tariffs on Indonesian goods if they cause serious injury to Canadian industries, but each type of good can only be subject to such an order once, and the order cannot last more than three years total
- Tariff reductions are phased in gradually (Y1 = 5 years, Y2 = 10 years, Y3 = 15 years), meaning the full trade liberalization effects will not be felt immediately but will unfold over up to 15 years
- The bill comes into force only when the Governor in Council issues an order, meaning Parliament passes it but the government controls the exact start date
Who's Affected
- Canadian exporters seeking access to the Indonesian market
- Canadian importers and businesses that use Indonesian goods or materials
- Canadian domestic producers (e.g., agriculture, textiles, seafood, auto parts) who may face increased competition from Indonesian imports
- Indonesian exporters and investors doing business in Canada
- Canadian consumers who may see price changes on imported Indonesian goods
- Canadian workers in industries affected by increased trade with Indonesia
Vibes
0 responses
Gotchas
- Natural water (surface or groundwater in any form) is explicitly excluded from the agreement and this bill, meaning water resources cannot be treated as a tradeable commodity under this deal
- Private individuals and companies cannot independently sue to enforce rights under the agreement without the consent of the Attorney General of Canada, limiting direct legal recourse
- Some sensitive product categories — including many dairy, poultry, eggs, alcohol, sugar, and tobacco products — are listed in Schedule 1 as 'N/A,' meaning they are excluded from Indonesia Tariff benefits entirely
- Emergency safeguard measures allow Canada to temporarily reimpose higher tariffs on Indonesian goods if they cause serious injury to Canadian industries, but each type of good can only be subject to such an order once, and the order cannot last more than three years total
- Tariff reductions are phased in gradually (Y1 = 5 years, Y2 = 10 years, Y3 = 15 years), meaning the full trade liberalization effects will not be felt immediately but will unfold over up to 15 years
- The bill comes into force only when the Governor in Council issues an order, meaning Parliament passes it but the government controls the exact start date
Summary
Bill C-18 implements the Comprehensive Economic Partnership Agreement (CEPA) between Canada and Indonesia, which was signed in Ottawa on September 24, 2025. The bill formally approves the agreement and makes the legal changes needed for Canada to meet its obligations under it. This includes reducing or eliminating customs duties (tariffs) on a wide range of goods traded between the two countries, with reductions phased in over periods of up to 15 years depending on the product. The bill affects several existing Canadian laws, including the Customs Act, the Customs Tariff, the Investment Canada Act, and the Canadian International Trade Tribunal Act. It creates a new 'Indonesia Tariff' category so that qualifying Indonesian goods can receive preferential duty rates. It also sets up joint committees and dispute resolution processes to manage the ongoing relationship between the two countries under the agreement. The bill was introduced to expand trade and investment between Canada and Indonesia, promote economic growth, and advance goals related to labour rights, environmental protection, and sustainable development. Indonesia is a major Southeast Asian economy, and this agreement is intended to give Canadian businesses better access to that market while also opening Canada to more Indonesian goods and investment.
Automatically generated from bill text using Claude
Vibes
0 responses
Recorded Votes
| Date | Description | Yeas | Nays | Result |
|---|---|---|---|---|
| Feb 2, 2026 | 2nd reading of Bill C-18, An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia | 332 | 1 | Agreed To |