Summary#

• This bill approves and puts into effect a new trade deal between Canada and Indonesia, signed in September 2025.
• Its main goal is to lower or remove import taxes (tariffs) on many goods, set clear rules for trade and investment, and add labour, environment, and anti‑corruption commitments.

Key changes:

• Creates a new Indonesia Tariff (IDT) so most goods from Indonesia can enter Canada duty‑free right away; others phase down over about 4, 10, or 15 years; some sensitive goods are not included.
• Updates customs rules so importers, exporters, or producers can certify a product’s origin to claim the lower tariff.
• Lets Canada act if imports from Indonesia surge and harm Canadian producers, including pausing tariff cuts and adding a temporary duty for up to three years.
• Requires the trade minister to make sure Canadian companies in Indonesia follow agreed principles and guidelines (responsible business conduct), set up a public complaints process, and report yearly starting in 2027.
• Sets up committees and dispute panels under the deal, and allows Canada to suspend benefits to Indonesia if the deal’s rules are broken.
• Calls for a full review of the deal and this law every three years by a House of Commons committee.

What it means for you#

• Consumers

  • Many everyday goods from Indonesia may get cheaper over time as tariffs drop to zero. Examples likely include clothes, shoes, household items, some foods, and electronics accessories.
  • More choice on store shelves and online.

• Importers and Retailers

  • Lower landed costs on eligible Indonesian goods under the new IDT rate; many items are duty‑free now, others step down over set schedules (about 4, 10, or 15 years).
  • Simpler paperwork: you can self‑certify origin to claim the tariff cut, similar to other recent trade deals.

• Exporters and Service Firms

  • Clearer, more predictable access to Indonesia’s market, with lower or zero tariffs on many Canadian goods going to Indonesia and new rules for services and investment.
  • Small and medium‑sized businesses get programs and committees aimed at helping them use the deal.

• Farmers and Food Processors

  • Some sensitive items (for example, many dairy, poultry, eggs, and certain processed foods) are excluded or have slow phase‑outs, so changes are gradual and limited in these areas.
  • Other agri‑food products may see better access to Indonesia.

• Manufacturing Workers and Businesses

  • Import competition from Indonesia may increase in areas like textiles, footwear, furniture, and some consumer goods as tariffs fall.
  • A safeguard process exists: if surging imports that benefit from the deal are a main cause of serious injury to Canadian producers, the government can temporarily pause cuts or add duties.

• Indigenous and Community Organizations

  • The deal highlights engagement by Indigenous Peoples in trade and investment. Opportunities may grow through supplier links, export promotion, and SME support.
  • You can submit complaints to the trade minister if a Canadian company in Indonesia is not following the agreed principles and guidelines.

• Canadian Companies Operating in Indonesia

  • You must follow the agreement’s referenced principles and guidelines (responsible business conduct). The minister will run a complaints process and report to Parliament each year.

Expenses#

Estimated public cost: modest federal administrative costs, plus lower customs revenue as tariffs are reduced.

• Canada must pay its share of the trade deal’s committees, panels, and experts.
• The trade department will staff support functions, run a complaints process, and prepare annual reports.
• Federal customs revenue will fall as tariffs drop or go to zero on many imports from Indonesia.
• Costs for safeguard or dispute cases may arise, but only when used.
• No publicly available official dollar estimate.

Proponents' View#

• Opens a fast‑growing market for Canadian goods and services, helping diversify trade beyond North America and China.
• Lowers costs for consumers and businesses by cutting tariffs, easing supply chain pressures.
• Includes labour, environment, anti‑corruption, and responsible business conduct commitments, with committees and dispute tools to back them up.
• Phased tariff cuts and safeguard options protect sensitive sectors and give time to adjust.
• Sets predictable rules for investment, which can attract new capital and support jobs in Canada.
• Regular three‑year reviews keep Parliament engaged and allow course corrections.

Opponents' View#

• Import competition could pressure Canadian jobs in sectors like textiles, footwear, furniture, and some consumer manufacturing.
• Labour and environmental commitments may be hard to enforce on the ground, leading to limited real‑world improvements.
• Investor‑state dispute options in the agreement could let foreign investors challenge Canadian rules, chilling public‑interest regulation.
• Cutting tariffs reduces federal customs revenue.
• Some worry about links to problem commodities (for example, goods tied to deforestation) and say stronger, traceable standards are needed before opening the market.