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C-18

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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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Engagement

Votes

2

Comments

0

Follows

0

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.

Free Trade
Indonesia
Tariffs
Economy
Water Protection

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

Low (Information Sharing) Interaction

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

Canadian Exporters (Agriculture, Potash, Wheat)
Consumers buying imported goods
Importers and Logistics Companies

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

Domestic Textile and Clothing Manufacturers
Small manufacturing businesses competing with lower-labor-cost imports

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

Votes on this bill

Vote 62

Agreed To

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

Maninder Sidhu

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.

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