EU, Indonesia Conclude Free Trade Agreement Talks
The EU and Indonesia concluded negotiations on a Comprehensive Economic Partnership Agreement and Investment Protection Agreement, the European Commission announced Sept. 22. The EU said the deals are a "key milestone" in "strengthening trade and investment ties with a major economy" and "creating new export opportunities and more secure supply chains for energy and raw materials."
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The free trade agreement will "significantly benefit European farmers," lowering tariffs on "agri-food products" while protecting key EU sectors, such as the "automotive, chemicals, and machinery sectors," the commission said. The deal will drop import duties on 98.5% of tariff lines and simplify procedures on EU goods being shipped to Indonesia.
The agreement also will protect 221 EU and 72 Indonesian agricultural and food geographical indications, as well as shield sensitive agricultural products such as "rice, sugar and fresh bananas where existing tariffs are maintained," the commission said. It will limit "access to the EU market for other sensitive products through carefully calibrated quotas."
In addition, the investment agreement aims to open new opportunities for EU investments in Indonesia, including in sectors such as "electric vehicles, electronics, and pharmaceuticals," the commission said. Both deals also will shield EU trademarks, ensure remedies against infringers and provide tools to "combat counterfeit products," the EU said.
The deals must be approved by the Council of the EU and European Parliament.