Comprehensive Economic Partnership Agreement eliminates trade barriers and could give Canada access to critical minerals in Southeast Asia.
The governments of Canada and Indonesia signed the Comprehensive Economic Partnership Agreement in Jakarta on Monday, according to Reuters and other news outlets. Under the partnership, the countries will deepen their economic ties by eliminating trade barriers and facilitating joint investments. In addition, Canada hopes to gain access to Southeast Asian supply chains, including those for critical minerals.
Amid the global race for critical minerals, Indonesia is emerging as a potential alternative to industry leader China, drawing significant international interest. According to the United States Geological Survey, Indonesia is the world’s leading nickel producer, accounting for half of the total output (PDF). In addition, the country is the world’s third-largest tin miner and produces various other critical minerals. Since 2021, the Indonesian government has introduced several export bans on unprocessed raw materials, aiming to boost domestic processing, foster value-added industries, and attract foreign investment to strengthen the country’s economic development.
In September, Indonesia and the United Kingdom agreed to collaborate on critical minerals, including working together on sustainable upstream and downstream processing (we reported). Already in 2023, U.S. President Joe Biden met with his then-counterpart, Indonesian President Joko Widodo, to elevate their relations. The two also discussed a possible critical mineral partnership.
Photo: Oleksii Liskonih
