Canada Expands Trade Horizons with Indonesia: 95% of Exports to Gain Duty-Free Access

OTTAWA – Canada is taking a bold step to diversify its trade relationships, moving beyond its heavy reliance on the United States by striking a major partnership with Indonesia. The deal, announced this week, could grant duty-free access to up to 95% of Canadian exports to the Southeast Asian nation.

The move comes at a time when Canadian officials are pushing for new markets to shield the economy from the risks of over-dependence on the U.S. With trade tensions, shifting global supply chains, and increasing protectionist policies south of the border, Ottawa sees Indonesia as a gateway to Asia’s fast-growing economies.

A Major Win for Canadian Farmers and Businesses

Indonesia, with a population of more than 270 million and a rapidly growing middle class, represents a valuable market for Canadian goods. The deal is expected to benefit sectors such as agriculture, natural resources, energy, and advanced manufacturing. Farmers, in particular, could see significant opportunities in exporting wheat, canola, and pulses without heavy tariffs.

“This partnership with Indonesia gives Canadian exporters a new level of access to one of the world’s most dynamic economies,” said a Canadian trade official. “It not only reduces costs but also positions Canada as a strong and reliable global partner.”

Strategic Diversification Beyond the U.S.

Nearly 75% of Canada’s exports currently go to the United States. While the U.S. remains Canada’s largest trading partner, officials have long stressed the need to diversify. Expanding trade with Asia-Pacific countries like Indonesia is part of a larger strategy to secure economic resilience.

Trade experts say this agreement could also help Canada build stronger ties in the Indo-Pacific, a region that has become central to global trade and investment. “Canada’s economic future will depend on looking beyond its southern neighbor,” one analyst noted. “Deals like this with Indonesia are a critical step forward.”

What Comes Next

Negotiations are expected to finalize the details of duty-free access in the coming months, with implementation projected for 2026. In the meantime, Canadian exporters are preparing to seize new opportunities in Indonesian markets.

For Canadians, this deal represents more than just a trade agreement—it is a signal that the country is ready to compete and thrive on the global stage.

Canada is feeding the world, building stronger partnerships, and ensuring that its economy is not tied to one single market.