45th Parliament · Session 1
Bill C-18: An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia
Canada-Indonesia Comprehensive Economic Partnership Agreement Implementation Act
Introduced
December 11, 2025
Current Stage
RoyalAssentGiven
Last Updated
May 6, 2026
Sponsor
Maninder Sidhu
Community Support
Community Vote
50% Support
2 votes
Politicians' Vote
99% Support
337 MPs
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Parliamentary Votes
1
Statements
18
Bill C-18
Wed May 06 2026
An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia
Impact Rating
3/5
Short Summary
Implements a free trade deal with Indonesia, lowering taxes on imports and exports while establishing rules for environmental cooperation and dispute resolution.
This bill turns the recently signed free trade agreement between Canada and Indonesia into Canadian law. It removes or lowers import taxes (tariffs) on goods traded between the two countries to encourage more business. It also sets up the rules for how disputes will be handled and establishes committees to oversee environmental and labor standards within this trade relationship. Crucially, it includes specific legal text to protect Canadian water resources from being treated as a tradable good.
Why does this bill exist?
Origin (Platform Promise)
This bill is the final step to operationalize the trade agreement signed in September 2025, fulfilling the government's Indo-Pacific Strategy goals.
Eliminates or gradually reduces customs duties (taxes) on goods imported from Indonesia.
Explicitly states that the trade agreement does not apply to Canadian natural surface or ground water, preventing bulk water exports.
Creates a 'Joint Committee' and sub-committees to manage trade, labor, and environmental issues.
Grants the Cabinet the power to suspend trade benefits or retaliate if Indonesia violates the agreement.
Prevents private citizens or companies from suing the Canadian government solely based on the text of this trade agreement without the Attorney General's permission.
Establishes a mechanism to protect Canadian industries (emergency surtaxes) if a sudden flood of Indonesian imports causes serious injury to local businesses.
Consumers
(Cheaper)
Prices on items like clothing, shoes, and furniture made in Indonesia may drop as import taxes are removed.
Farmers & Resource Workers
(Easier)
Their products will be cheaper for Indonesian buyers, likely increasing demand and export volume.
Domestic Manufacturers
(Harder)
Will face stiffer price competition from duty-free Indonesian imports, potentially squeezing profit margins.
Provincial Impact
Provincial Impact
Trade is a federal jurisdiction. Provinces do not need to pass laws, but their local industries (e.g., Prairie agriculture vs. Quebec manufacturing) will feel different economic effects.
Benefits & Pros
Lower prices for consumers on goods imported from Indonesia (e.g., textiles, electronics, footwear).
New market opportunities for Canadian exporters (agriculture, energy, and minerals) to sell duty-free in Indonesia.
Diversifies Canada's trade partners, reducing reliance on the US and China.
Includes explicit legal protections to ensure Canadian water cannot be treated as a commodity.
Beneficiaries
Risks & Cons
Canadian manufacturers who compete directly with low-cost Indonesian goods may face harder competition.
Loss of government revenue from the customs duties that are being eliminated.
Transportation of goods across the Pacific contributes to global shipping emissions.
Reliance on foreign supply chains can be risky during global instability.
Affected Groups
Before & After
Currently, a Canadian importing winter jackets from Indonesia pays an 18% tariff at the border, which is passed on to the customer. Under this bill, that tariff drops to 0% (either immediately or over a few years), making the jacket cheaper to import.
Real World Scenario
Currently: A furniture store buys a container of chairs from Indonesia for $10,000 and pays $800 in tariffs to the Canadian government. Under this Bill: The store pays $0 in tariffs, saving $800, which they could keep as profit or pass to the customer as a price cut.
Frequently Asked Questions
No. Clause 4 of the bill explicitly states that nothing in this agreement applies to natural surface or ground water, legally preventing it from being treated as a tradeable good.
It may slightly lower costs for specific goods like clothing, footwear, and electronics imported from Indonesia, but it will not impact rent, gas, or groceries produced in Canada.
It creates competition for workers in manufacturing sectors (like textiles), but opens opportunities for workers in export sectors (like agriculture and mining). The bill includes committees to monitor labor standards.
Votes on this bill
2nd reading of Bill C-18, An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia
Mon Feb 02 2026
Yeas: 332
Nays: 1
Total: 337
Sponsor
Member of Parliament
House of Commons
First reading
Completed on December 11, 2025
Second reading
Completed on February 2, 2026
Consideration in committee
Completed on February 24, 2026
Report stage
Completed on March 11, 2026
Third reading
Completed on March 11, 2026
Senate
First reading
Completed on March 11, 2026
Second reading
Completed on April 15, 2026
Consideration in committee
Completed on April 30, 2026
Third reading
Completed on May 5, 2026
Royal Assent
Royal assent
Completed on May 6, 2026
Abuse Potential
The bill grants the Governor in Council (Cabinet) significant power under Clause 15 to suspend rights, privileges, or federal laws regarding Indonesia without an immediate vote in Parliament. While this is intended for retaliation if Indonesia breaks the deal, theoretically, a government could use this to arbitrarily manipulate trade rules or target specific businesses for diplomatic leverage. Additionally, Clause 8 blocks citizens from suing the government for failing to uphold the treaty, effectively centralizing all enforcement power within the federal government and removing judicial oversight for private parties.
Reduces government revenue by eliminating customs duties (tariffs) on Indonesian imports; creates administrative costs for new trade committees.
Implementation Risk
The Canada Border Services Agency (CBSA) must update software to recognize the new 'IDT' tariff code immediately. If systems aren't ready, goods could be held up at ports or charged the wrong tax rate.
Broad Economic Impact
Direct Cost/Benefit
Everyday Life
Minimal impact
Admin Burden
Requires new forms
Timeline
Phased in over 3 years
Bill Text Versions
View different versions of the bill text or compare changes between versions
Summary
This enactment implements the Comprehensive Economic Partnership Agreement between Canada and Indonesia, done at Ottawa on September 24, 2025. Among other things, it (a) approves the Agreement; (b) provides that no recourse may be taken on the basis of certain provisions of the enactment or any order made under those provisions, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada; (c) provides for payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement; (d) gives the Governor in Council the power to make orders in accordance with the Agreement; (e) requires the Minister for International Trade to ensure that Canadian companies comply with the principles and guidelines referred to in Article 22.15 of the Agreement; and (f) requires a comprehensive review of the operation and effect of the Act and of the Agreement every three years. It also makes related amendments to certain Acts to bring them into conformity with Canada’s obligations under the Agreement.
Full Text
Short Title Short title 1 This Act may be cited as the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act . Interpretation Definitions 2 The following definitions apply in this Act. Agreement means the Comprehensive Economic Partnership Agreement between Canada and Indonesia, done at Ottawa on September 24, 2025. ( Accord ) Committee means the Joint Committee established under Article 23.1 of the Agreement. ( Comité ) federal law means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament. ( texte législatif fédéral ) Minister means the Minister for International Trade. ( ministre ) Interpretation consistent with Agreement 3 For greater certainty, this Act and any federal law that implements a provision of the Agreement or that allows the Government of Canada to meet an obligation under the Agreement is to be interpreted in a manner consistent with the Agreement. Non-application of Act and Agreement to water 4 For greater certainty, nothing in this Act or the Agreement applies to natural surface or ground water in liquid, gaseous or solid state. Construction 5 For greater certainty, nothing in this Act, by specific mention or omission, is to be construed to affect in any manner the right of Parliament to enact legislation that implements any provision of the Agreement or that allows the Government of Canada to meet an obligation under the Agreement. His Majesty Binding on His Majesty 6 This Act is binding on His Majesty in right of Canada. Purpose Purpose 7 The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to (a) establish a free trade area in accordance with the Agreement; (b) promote, through the expansion of reciprocal trade, the harmonious development of economic relations between Canada and Indonesia in order to create opportunities for economic growth; (c) provide for a predictable framework for business planning and investment; (d) promote fair competition in trade between Canada and Indonesia; (e) substantially increase investment opportunities in Canada and Indonesia, while preserving the right of each party to the Agreement to regulate to achieve legitimate policy goals; (f) reduce or eliminate barriers to trade in goods and services in order to contribute to the harmonious development and expansion of trade; (g) seek to ensure that the benefits and opportunities created by the Agreement are widely shared; (h) support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by the Agreement; (i) promote environmental protection, including through effective enforcement of environmental laws, mutually supportive trade and environmental policies and practices, and strengthened environmental cooperation between Canada and Indonesia; (j) promote the protection and enforcement of labour rights and the improvement of working conditions; (k) encourage enterprises operating within Canada or Indonesia or subject to their jurisdiction to respect internationally recognized corporate social responsibility and responsible business conduct standards and principles; (l) promote sustainable development; (m) promote transparency, good governance and the rule of law, while strengthening commitments to combat bribery and corruption in trade and investment; (n) recognize the importance of increased engagement by Indigenous Peoples in trade and investment and facilitate such engagement; and (o) recognize the right of the parties to the Agreement to adopt or maintain measures with respect to cultural industries in accordance with the rights and obligations provided for in the Agreement. Causes of Action Causes of action 8 (1) No person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of sections 11 to 14 or an order made under section 15 . Causes of action under Agreement (2) Subject to Articles 10.24 and 13.22 to 13.43 of the Agreement, no person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement. Approval Agreement approved 9 The Agreement is approved. Administrative and Institutional Provisions Canadian representative on Committee 10 The Minister is the principal representative of Canada on the Committee. Payment of expenditures 11 The Government of Canada is to pay its appropriate share of the aggregate of any expenditures incurred by or on behalf of the Committee. Powers of Minister 12 (1) The Minister may (a) subject to subsections (2) to (4), appoint representatives of Canada to any panel, committee, subcommittee, working group, expert group or other subsidiary body referred to in Chapter 23 or 24 of the Agreement; (b) appoint a panellist in accordance with Article 24.8 of the Agreement; and (c) propose candidates to serve as the chair of a panel, or select the chair, in accordance with that Agreement. Power of Minister of the Environment (2) The Minister of the Environment may, with the concurrence of the Minister, appoint representatives of Canada to the Environment Sub-Committee established under Article 17.21 of the Agreement. Power of Minister of Labour (3) The Minister of Labour may, with the concurrence of the Minister, appoint representatives of Canada to the Labour Council established under Article 17.32 of the Agreement. Power of Minister — Article 17.47 of Agreement (4) The Minister may, with the concurrence of the Minister of the Environment and the Minister of Labour, appoint representatives of Canada to the Committee on Trade and Sustainable Development established under Article 17.47 of the Agreement. Delegation (5) The Minister may delegate the Minister’s powers, duties or functions under any of subsections (1) to (4) to any officer of the Department of Foreign Affairs, Trade and Development. Administrative support 13 The Minister is to designate an agency, division or branch of the Government of Canada to facilitate the operation of Chapter 24 of the Agreement and to provide administrative assistance to panels referred to in that Chapter. Payment of costs 14 The Government of Canada is to pay the costs of or its appropriate share of the costs of (a) the remuneration and expenses payable to members of panels, committees, subcommittees, working groups, expert groups and other subsidiary bodies, to independent experts and to the assistants of panel members; and (b) the general expenses incurred by panels, committees, subcommittees, working groups, expert groups and other subsidiary bodies. Orders Orders — Article 24.13 of Agreement 15 (1) The Governor in Council may, for the purpose of suspending benefits in accordance with Article 24.13 of the Agreement, by order, do any of the following: (a) suspend rights or privileges granted by Canada under the Agreement or any federal law to Indonesia, in respect of goods of Indonesia, to service suppliers or investors of Indonesia, or in respect of investments of investors of Indonesia; (b) modify or suspend the application of any federal law in respect of Indonesia, goods of Indonesia, service suppliers or investors of Indonesia or investments of investors of Indonesia; (c) extend the application of any federal law to Indonesia, goods of Indonesia, service suppliers or investors of Indonesia or investments of investors of Indonesia; (d) take any other measure that the Governor in Council considers necessary. Period of order (2) Unless repealed, an order made under subsection (1) has effect for the period specified in the order. Compliance with Principles and Guidelines — Canadian Companies Principles and guidelines 15.1 (1) The Minister must ensure that Canadian companies operating in Indonesia comply with the principles and guidelines referred to in Article 22.15 of the Agreement. Complaints process (2) The Minister must establish a process for receiving and responding to complaints of non-compliance with those principles and guidelines. Annual report (3) On or before January 1 of each year starting in 2027, the Minister must prepare a report that summarizes the activities carried out in relation to the Minister’s obligations under this section. Tabling of report (4) The Minister must cause a copy of the report to be tabled in each House of Parliament on any of the first 30 days on which that House is sitting after the report is completed. Review and Report Review by committee 15.2 (1) Within three years after the day on which this section comes into force, and every three years after that, a comprehensive review of the operation of this Act and of the Agreement, and of their effect, must be undertaken by a committee of the House of Commons that is designated or established by the House for that purpose. Report on review (2) The committee must, within six months after the completion of the review, submit to the House of Commons a report setting out its findings and recommendations. Related Amendments R.S., c. F- 11 Financial Administration Act 16 Schedule VII to the Financial Administration Act is amended by adding the following in alphabetical order: Comprehensive Economic Partnership Agreement between Canada and Indonesia, done at Ottawa on September 24, 2025. R.S., c. 28 (1st Supp.) Investment Canada Act 17 The schedule to the Investment Canada Act is amended by adding, at the end of column 1, a reference to “ Agreement within the meaning of section 2 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act ” and a corresponding reference to “Article 1.5” in column 2. R.S., c. 1 (2nd Supp.) Customs Act 18 Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order: CICEPA has the same meaning as Agreement in section 2 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act . ( APÉGCI ) Indonesia has the same meaning as in subsection 2(1) of the Customs Tariff . ( Indonésie ) 19 Subsection 35.1(3.1) of the Act is replaced by the following: Certificate of origin completed by importer (3.1) If an importer of goods for which preferential tariff treatment under the CPTPP, CUSMA or CICEPA will be claimed is the person who certifies that the goods meet the rules of origin set out in, or contemplated by, the CPTPP, CUSMA or CICEPA, the importer shall do so in writing, in the prescribed form with the prescribed information, and on the basis of supporting documents that the importer has or supporting documents that are provided by the exporter or producer. 20 (1) Subsection 97.1(1.1) of the Act is replaced by the following: Certificate of Origin — CPTPP, CUSMA or CICEPA (1.1) If an exporter or producer of goods that are exported to a CPTPP country, a CUSMA country or Indonesia and for which preferential tariff treatment under the CPTPP, CUSMA or CICEPA will be claimed in accordance with the laws of that country is the person who certifies that the goods meet the rules of origin set out in, or contemplated by, the CPTPP, CUSMA or CICEPA, the exporter or producer shall do so in writing, in the prescribed form with the prescribed information, and (a) in the case of an exporter, on the basis of supporting information that the exporter has or by relying on supporting information that the producer has; and (b) in the case of a producer, on the basis of supporting information that the producer has. (2) Subsection 97.1(3) of the English version of the Act is replaced by the following: Notification of correct information (3) A person who has completed and signed a certificate in accordance with subsection (1) or (1.1) and who has reason to believe that it contains incorrect information shall immediately notify each person and each country or authority to whom the certificate was given of the correct information. 21 Part 1 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Indonesia” in column 1, a corresponding reference to “CICEPA” in column 2 and a corresponding reference to “Indonesia Tariff rates of customs duty under the Customs Tariff ” in column 3. 22 Part 2 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CICEPA” in column 1 and a corresponding reference to “paragraph 4 of Article 3.25” in column 2. 23 Part 3 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Indonesia” in column 1 and a corresponding reference to “subparagraphs 1(a), (c) and (d) of Article 4.8 of CICEPA” in column 2. 24 Part 4 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Indonesia” in column 1 and a corresponding reference to “CICEPA” in column 2. 25 Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CICEPA” in column 1 and a corresponding reference to “Chapters 3 and 4” in column 2. R.S., c. 17 (2nd Supp.) Commercial Arbitration Act 26 Schedule 2 to the Commercial Arbitration Act is amended by adding, at the end of column 1, a reference to “Article 13.25” and a corresponding reference to “Comprehensive Economic Partnership Agreement between Canada and Indonesia, done at Ottawa on September 24, 2025” in column 2. R.S., c. 47 (4th Supp.) Canadian International Trade Tribunal Act 27 (1) Section 2 of the Canadian International Trade Tribunal Act is amended by adding the following after subsection (4.5): Definition of Indonesia Tariff (4.6) In this Act, Indonesia Tariff means the rates of customs duty referred to in section 49.71 of the Customs Tariff . (2) Subsection 2(5) of the Act is amended by adding, in alphabetical order, a reference to “Indonesia” in the list of countries. 28 The Act is amended by adding the following after section 19.0191: Definition of principal cause 19.0192 (1) In this section, principal cause means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Emergency measures — Indonesia (2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Indonesia Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for an inquiry and report. Terms of reference (3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be. Tabling of report (4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report is so submitted. Notice of report (5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette . 29 The Act is amended by adding the following after section 20.07: Definition of principal cause 20.08 (1) In this section, principal cause means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat. Determination in respect of goods imported from Indonesia (2) If, in an inquiry conducted under section 20 into goods imported from Indonesia that are specified by the Governor in Council or in an inquiry conducted pursuant to a complaint under subsection 23(1) into goods so imported that are specified by the Tribunal, the Tribunal finds that the specified imported goods and goods of the same kind imported from other countries are being imported in such increased quantities and under such conditions as to be a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, the Tribunal shall determine whether the specified imported goods are a principal cause of the serious injury or threat of serious injury. Determinations (3) In the case of an inquiry to which subsection (2) applies, the Tribunal shall include in its report any determinations made under that subsection. Inquiry under section 30.07 (4) In an inquiry under section 30.07 into goods imported from Indonesia conducted pursuant to an extension request, the Tribunal shall determine whether the goods imported from Indonesia are a principal cause of the serious injury or threat of serious injury to domestic producers of like or directly competitive goods. 30 Section 21.1 of the Act is replaced by the following: Definition of complaint 21. 1 In sections 23 to 30, complaint means a written complaint filed with the Tribunal under any of subsections 23(1) to (1.098) and, for the purposes of those sections, a complaint is properly documented if the Tribunal is satisfied that it contains or is accompanied by the information required by section 23. 31 Section 23 of the Act is amended by adding the following after subsection (1.097): Filing of complaint — Indonesia Tariff (1.098) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Indonesia Tariff, or any person or association acting on or behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities, in absolute terms or relative to domestic production of like or directly competitive goods, and under such conditions as to constitute a cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods. 32 Paragraph 25(2)(c) of the Act is replaced by the following: (c) in the case of a complaint filed under subsection 23(1.06), (1.08), (1.083), (1.09), (1.091), (1.092), (1.096) or (1.098), send to the Minister a copy of the complaint and the information examined by the Tribunal in making its determination. 33 Paragraph 26(1)(a) of the Act is amended by adding the following after subparagraph (i.97): (i.98) in the case of a complaint filed under subsection 23(1.098), the goods that are entitled to the Indonesia Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, 34 Subsection 27(1) of the Act is amended by adding the following after paragraph (a.97): (a.98) in the case of a complaint filed under subsection 23(1.098), the goods that are entitled to the Indonesia Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; 35 (1) The portion of subsection 30.03(1) of the Act before paragraph (a) is replaced by the following: Notice of expiring orders 30.03 (1) The Tribunal shall cause to be published in the Canada Gazette a notice of the expiry date of any order that imposes a surtax on any goods under subsection 55(1), section 60, subsection 63(1), 74(1) or (2), 75(1), 76(1) or 77(1) of the Customs Tariff or includes any goods on the Import Control List under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act , but no notice shall be published if (2) Subsection 30.03(1) of the Act is amended by striking out “or” at the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e): (f) the total of the effective period specified in the order and any periods during which the goods were subject to a surtax imposed by an order made under subsection 75(1) of the Customs Tariff is three years. 36 Subsection 30.04(1) of the Act is replaced by the following: Filing of request relating to extension orders 30.04 (1) Any domestic producer of goods that are like or directly competitive with any goods that are subject to an order referred to in subsection 30.03(1), or any person or association acting on behalf of any such domestic producer, may file with the Tribunal a written request that an extension order be made under subsection 63(1), 74(7), 75(3), 76(3) or 77(3) of the Customs Tariff or subsection 5(3.2) of the Export and Import Permits Act because an order continues to be necessary to prevent or remedy serious injury to domestic producers of like or directly competitive goods. 1997, c. 36 Customs Tariff 37 Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order: Canada–Indonesia Comprehensive Economic Partnership Agreement has the same meaning as Agreement in section 2 of the Canada–Indonesia Comprehensive Economic Partnership Agreement Implementation Act . ( Accord de partenariat économique global Canada–Indonésie ) Indonesia means the land territories, internal waters, archipelagic waters, territorial sea, including the seabed and subsoil thereof, and air space over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay on December 10, 1982. ( Indonésie ) 38 Paragraph 14(2)(c) of the Act is amended by adding the following after subparagraph (xv): (xvi) subsection 75(1); 39 Section 27 of the Act is amended by adding the following in alphabetical order: IDT refers to the Indonesia Tariff. ( TID ) 40 The Act is amended by adding the following after section 49.7: Indonesia Tariff Application of IDT 49.71 (1) Subject to section 24, goods that originate in Indonesia are entitled to the Indonesia Tariff rates of customs duty. “A” final rate for IDT (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “IDT” in relation to goods entitled to the Indonesia Tariff, the Indonesia Tariff rate of customs duty that applies to those goods is the final rate of “Free”. “F” staging for IDT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “IDT” in relation to goods entitled to the Indonesia Tariff, the Indonesia Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Staging for IDT (4) If “Y1”, “Y2” or “Y3” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “IDT” in relation to goods entitled to the Indonesia Tariff, the Indonesia Tariff rate of customs duty that applies to those goods is the initial rate, reduced (a) if “Y1” is set out, (i) effective on the coming into force of this subsection, to four fifths of the initial rate, (ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to three fifths of the initial rate, (iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to two fifths of the initial rate, (iv) effective on January 1 of the year that is three years after the year of the coming into force of this subsection, to the one fifth of the initial rate, and (v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to the final rate of “Free”; (b) if “Y2” is set out, (i) effective on the coming into force of this subsection, to nine tenths of the initial rate, (ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to eight tenths of the initial rate, (iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to seven tenths of the initial rate, (iv) effective on January 1 of the year that is three years after the year of the coming into force of this subsection, to six tenths of the initial rate, (v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to five tenths of the initial rate, (vi) effective on January 1 of the year that is five years after the year of the coming into force of this subsection, to four tenths of the initial rate, (vii) effective on January 1 of the year that is six years after the year of the coming into force of this subsection, to three tenths of the initial rate, (viii) effective on January 1 of the year that is seven years after the year of the coming into force of this subsection, to two tenths of the initial rate, (ix) effective on January 1 of the year that is eight years after the year of the coming into force of this subsection, to one tenth of the initial rate, and (x) effective on January 1 of the year that is nine years after the year of the coming into force of this subsection, to the final rate of “Free”; and (c) if “Y3” is set out, (i) effective on the coming into force of this subsection, to fourteen fifteenths of the initial rate, (ii) effective on January 1 of the year that is one year after the year of the coming into force of this subsection, to thirteen fifteenths of the initial rate, (iii) effective on January 1 of the year that is two years after the year of the coming into force of this subsection, to twelve fifteenths of the initial rate, (iv) effective on January 1 of the year that is three years after the year of the coming into force of this subsection, to eleven fifteenths of the initial rate, (v) effective on January 1 of the year that is four years after the year of the coming into force of this subsection, to ten fifteenths of the initial rate, (vi) effective on January 1 of the year that is five years after the year of the coming into force of this subsection, to nine fifteenths of the initial rate, (vii) effective on January 1 of the year that is six years after the year of the coming into force of this subsection, to eight fifteenths of the initial rate, (viii) effective on January 1 of the year that is seven years after the year of the coming into force of this subsection, to seven fifteenths of the initial rate, (ix) effective on January 1 of the year that is eight years after the year of the coming into force of this subsection, to six fifteenths of the initial rate, (x) effective on January 1 of the year that is nine years after the year of the coming into force of this subsection, to five fifteenths of the initial rate, (xi) effective on January 1 of the year that is 10 years after the year of the coming into force of this subsection, to four fifteenths of the initial rate, (xii) effective on January 1 of the year that is 11 years after the year of the coming into force of this subsection, to three fifteenths of the initial rate, (xiii) effective on January 1 of the year that is 12 years after the year of the coming into force of this subsection, to two fifteenths of the initial rate, (xiv) effective on January 1 of the year that is 13 years after the year of the coming into force of this subsection, to one fifteenth of the initial rate, and (xv) effective on January 1 of the year that is 14 years after the year of the coming into force of this subsection, to the final rate of “Free”. Rounding of specific rates (5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent. Rounding of amounts — fraction other than 0.5 (6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than two per cent (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately. 41 The Act is amended by adding the following after section 74: Bilateral Emergency Measures — Indonesia Order by Governor in Council 75 (1) Subject to subsections (2) to (5), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.0192(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.098) of that Act, that goods that are entitled to the Indonesia Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the domestic production of like or directly competitive goods, and under such conditions as to constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order (a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.71; and (b) make those goods subject to a temporary duty, in addition to any other duty specified in this Act or in any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Indonesia Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of (i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and (ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection. Terms and conditions (2) An order under subsection (1) (a) is not to be made more than once in respect of goods of any particular kind; (b) remains in effect only for the period, not exceeding two years, that is specified in the order; (c) may be made during the period beginning on the day on which this subsection comes into force and ending (i) if the order is in respect of goods for which the Indonesia Tariff rate of customs duty is reduced to the final rate of “Free” over a period of less than 10 years, on the day that is 10 years after the day on which this subsection comes into force, and (ii) if the order is in respect of goods for which the Indonesia Tariff rate of customs duty is reduced to the final rate of “Free” over a period of 10 years or more, on the day after the expiry of the tariff staging period in respect of those goods. Extension of order (3) The Governor in Council may, on the recommendation of the Minister, by order, extend the period of an order made under subsection (1), if it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under section 30.07 of the Canadian International Trade Tribunal Act that the order continues to be necessary to prevent or remedy serious injury to, and to facilitate the adjustment of, domestic producers of like or directly competitive goods. The total period of the order is not to exceed three years. Rate of duty when order ceases to have effect (4) If an order made under subsection (1) ceases to have effect in a particular calendar year, the rate of customs duty applicable to the goods after the order ceases to have effect is the rate of customs duty that is applicable in accordance with section 49.71. Definition of principal cause (5) In this section, principal cause means, in respect of a serious injury or threat of serious injury, an important cause that is not less important than any other cause of the serious injury or threat. 42 Section 79 of the Act is amended by adding the following after paragraph (o): (p) subsection 75(1). 43 The List of Countries and Applicable Tariff Treatments set out in the schedule to the Act is amended by adding, in the column “Tariff Treatment / Other”, a reference to “IDT” opposite the reference to “Indonesia”. 44 The List of Tariff Provisions set out in the schedule to the Act is amended by (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT”, a reference to “IDT:”; (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT”, a reference to “IDT:”; (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “IDT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “IDT”, for all tariff items except those tariff items set out in Schedules 1 and 2 to this Act; (d) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate”, a reference to “N/A” after the abbreviation “IDT” for those tariff items set out in Schedule 1 to this Act; and (e) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “IDT”, for each tariff item set out in Schedule 2 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule. Coming into Force Order in council 45 This Act comes into force on a day to be fixed by order of the Governor in Council.
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Votes on this bill
2nd reading of Bill C-18, An Act to implement the Comprehensive Economic Partnership Agreement between Canada and Indonesia
Mon Feb 02 2026
Yeas: 332
Nays: 1
Total: 337
First reading
Dec 11, 2025
Second reading
Feb 2, 2026
Standing Committee on International Trade
(CIIT)
Consideration in committee
Feb 24, 2026
Standing Committee on International Trade
(CIIT)
Report stage
Mar 11, 2026
Third reading
Mar 11, 2026
First reading
Mar 11, 2026
Second reading
Apr 15, 2026
Standing Senate Committee on Foreign Affairs and International Trade
(AEFA)
Consideration in committee
Apr 30, 2026
Standing Senate Committee on Foreign Affairs and International Trade
(AEFA)
Third reading
May 5, 2026
Royal Assent
Royal assent
May 6, 2026, 10:05 AM
Royal Assent Details
Royal assent
May 6, 2026, 10:05 AM
The bill has received Royal Assent and has become law. It will come into force according to the provisions specified in the Act.
Latest statements by members (18)
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