C-18 An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia
Short Title: Canada-Indonesia Comprehensive Economic Partnership Agreement Implementation Act
Bill Type: House Government Bill
Bill Sponsor: Minister of International Trade
What This Bill Does
Canada and Indonesia signed a free trade deal in Ottawa on September 24, 2025. This Bill makes it law. It eliminates or reduces tariffs on goods traded between the two countries, opens up investment and services, and sets rules for labour, environment and corporate conduct. Most tariffs phase out over 5 to 15 years depending on the product.
WHO GAINS POWER
- Governor in Council gains authority to suspend tariff reductions and impose emergency duties on Indonesian goods if Canadian industries are being seriously harmed — without returning to Parliament
- Minister for International Trade gains authority to oversee Canadian companies operating in Indonesia and enforce compliance with corporate conduct standards
- Joint Committee gains authority to administer and interpret the Agreement on an ongoing basis
WHO LOSES POWER
- Parliament — once this Bill passes, tariff changes and emergency trade measures are handled by Cabinet order, not Parliamentary vote
- Canadians cannot challenge rights or obligations under this Agreement in court without the Attorney General's consent
WHO GAINS MONEY
- Canadian exporters — reduced or eliminated tariffs on goods entering Indonesia
- Indonesian exporters — reduced or eliminated tariffs on goods entering Canada
- Investors on both sides — expanded access and protections for cross-border investment
- Small and medium-sized businesses — explicitly named as intended beneficiaries of expanded trade access
WHO LOSES MONEY
- Canadian industries competing with Indonesian imports — particularly poultry, beef and certain food products listed in Schedule 2, which face phased tariff reductions over up to 15 years
- Canadian government — absorbs the cost of running the Joint Committee and all dispute resolution panels
THE CATCH
- Citizens cannot sue to enforce their rights under this Agreement without government permission
- Emergency tariff protections for Canadian industries can only be used once per product category and expire after three years maximum
- The Agreement covers Indonesia's full maritime territory including its exclusive economic zone — a broad jurisdictional reach
- A review of the Agreement's impact only happens every three years and is non-binding
Source: Bill C-18 — Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act Passed by House of Commons: March 11, 2026