EU and Indonesia seal trade deal after decade of talks
The European Union and Indonesia have reached a long-awaited trade agreement after nearly 10 years of negotiations, the European Commission confirmed on Tuesday.
The Comprehensive Economic Partnership Agreement (CEPA) aims to open new markets for European companies, cut tariffs, boost investment in Indonesia’s growth sectors, and secure supplies of critical raw materials.
The deal is expected to save European exporters around 600 million euros a year in customs duties on products such as cars, dairy, meat, fruit and processed foods. Sensitive goods like rice, eggs and bananas are excluded, while quotas will apply to items such as garlic and sweetcorn.
Sustainability commitments are also included, covering climate, labour rights and environmental protection. For the EU, the agreement will strengthen access to Indonesia’s vast reserves of nickel, cobalt, copper and tin. These are vital for green technologies.
The accord still requires approval from the European Parliament, EU member states and the Indonesian parliament.
EU Trade Commissioner Maros Sefcovic and Indonesian minister of Economic Affairs Airlangga Hartarto at a joint announcement on the CEPA trade framework © PHOTO SONNY TUMBELAKA / AFP
Related news
