(BSS/AFP) - Canada has signed a bilateral free trade agreement with Indonesia, which aims to eliminate or reduce tariffs on over 95 percent of Ottawa`s exports to its largest market in Southeast Asia.

Several experts told AFP the strategic agreement is being made in the context of global economic turmoil, exacerbated by the protectionist policies of the United States.

"This is the right deal at the right time with the right partner," Canada`s Prime Minister Mark Carney said, adding Indonesia is "Canada`s largest export market in Southeast Asia."

Indonesian President Prabowo Subianto called the agreement a "historic moment" during an official visit to Ottawa Wednesday, as it is the first of its kind with an Association of Southeast Asian Nations (ASEAN) member country.

"I`m very lucky to be the Indonesian president who brings this back to Indonesia," Subianto said.

Canada`s exports include wheat, potash, timber and soybeans.

The Comprehensive Economic Partnership Agreement (CEPA) agreement allows Canada to strengthen its presence in the Indo-Pacific region, in line with the strategy that was unveiled by the previous administration under Justin Trudeau.

The agreement also provides for the elimination of more than 90 percent of tariffs on Indonesian imports, a boon to the export of garments and leather goods to the North American market.

Simultaneously, a defense cooperation agreement was signed aimed at strengthening collaboration in military training, maritime security, cyber defense and peacekeeping.