On February 23, CCA had the opportunity to submit comments on the potential Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA). It allowed CCA to share its support for the launch of exploratory talks with Indonesia. Trade diversification efforts, particularly in the Asian region, will play a pivotal role in advancing Canada's post-pandemic trade recovery.
According to the Global Trade Tracker, Indonesian imports of beef products have grown steadily every year, from a ten-year average (2008-17) of 102,000 tonnes valued at $400 million per year to 234,700 tonnes valued at $1.01 billion per year in 2018-20. A Canada-Indonesia agreement that removes the current 5 per cent tariff and limitations on bone-in beef and offals would put Canada in a competitive position to access the market as the United States, Australia and New Zealand are all doing today. While not currently a market for beef, Indonesia is a substantial market for Canadian meat-and-bone meal (MBM), and there is opportunity to gain market share within this growing market. The ability to sell every piece of a meat animal to the market willing to pay the most for it is a crucial aspect of competitiveness.
Importantly a Canada-Indonesia CEPA would provide an opportunity to address current segregation requirements and ensure a path forward for halal eligible exports, a requirement for the market. Indonesia is an important Canadian agri-food export market among the ASEAN countries that are not currently CPTPP signatories. Therefore, one of the highest potentials for Canadian beef appears to lie in Indonesia and securing preferential access to Southeast Asian markets, including Indonesia, will be an essential way for Canada to keep pace in a region with our competitors such as the U.S., Australia and Europe.
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