“Agreement should be signed by next year,” said the Prime Minister’s office. They mainly made this trading pact to reduce trade barriers, help with market access, and facilitate access to South-East Asia. A trading pact means that it helps with reducing tariffs. It also includes investment guarantees, which help to make exchanges between them easier.

This pact was made at the G20 reunion in Peru, where Canada and Indonesia decided to finalize it. G20 is a group of the richest countries that meets every year and talks about many subjects. For example, they talk about trade, the environment, agriculture and much more.

Even though this decision has been pending for a few years,  Trump’s re-election has a few impacts. Donald Trump is creating fear for global trade due to his taxing imposition. He wants to impose a 25 percent tax on all items that go to the states.

Canada wants to get ahead and avoid being too affected. To maintain a strong economy, and avoid financial losses, they want to make deals with other places. If the tax applies to this country, they might not make as much trade with the United States.

Trump’s re-election is putting Trudeau in a privileged position with other countries because he has already been with him many times and we are the neighbors of the states.”We’re a front-line state,” said John Kirton, head of the G20 Research Group.

Indonesia is a country that would be great to collaborate with Canada for many reasons. It is going to help mainly Canadian traders and investors since this Asian country has a large economy. Indeed, Indonesia makes a lot of importations with Canadian supplies. In 2023, these two countries were mainly exporting and importing from each other’s machinery, but also cereals, rubber, fertilizers and more.

The Indonesian population is growing, and there are now over 280 million people living there. They are the fourth most populated country in the world so it’s gonna be an advantage for Canada to trade with them.