Cereals Canada is celebrating the signing of the Comprehensive Economic Partnership Agreement (CEPA) between Canada and Indonesia, a development poised to strengthen ties between the two countries and create new opportunities for Canadian grain farmers and exporters. The agreement, which takes effect in 2026, eliminates tariffs on Canadian agricultural products, establishes clear trade guidelines, and introduces a pioneering provision on agricultural biotechnology, a first for Indonesia in any trade deal.
Dean Dias, CEO of Cereals Canada and says the agreement is important to the future.
“The conclusion of the CEPA negotiations marks a significant milestone for Canada’s agriculture and agri-food sector, we applaud the government’s commitment to expanding market access and creating new opportunities for Canadian grain farmers and exporters.”
Canada is a global leader in wheat exports, with expected shipments nearing 25.7 million tonnes in the 2024-2025 crop year. Indonesia represents a critical market, as it is Canada’s second-largest destination for non-durum wheat. In 2023 alone, Indonesia imported 2.4 million tonnes of Canadian wheat, valued at $1.1 billion.
Dias emphasized the importance of the agreement in cementing a strong trade relationship with Indonesia.
“Having this agreement cements good trading rules and builds towards mutual benefits in the long-term relationship with Indonesia. The Canadian cereals sector looks forward to continuing our strong ties and sending even more high-quality, high-protein wheat to Indonesian millers.”
The Prairie Provinces of Manitoba, Saskatchewan, and Alberta play a vital role in Canada’s cereals industry, producing the high-protein Canada Western Red Spring (CWRS) wheat that dominates Canadian exports to Indonesia. The agreement’s comprehensive guidelines on sanitary and phytosanitary regulations promise predictability and efficiency for farmers and exporters alike.
Dias noted the inclusion of agricultural biotechnology in CEPA highlights Canada’s forward-looking approach to trade.
“This is a leading provision we hope to see in future agreements. Biotechnology tools are crucial for farmers, and this agreement ensures they won’t face unnecessary barriers.”
With CEPA set to open new doors in 2026, Canadian farmers have much to look forward to as they plan for the future.
“These are the types of agreements that help us do better trade in key markets like Indonesia,” Dias concluded.