Free Trade Agreement Eu Indonesia

The EU presented Indonesia with the following text proposals as a basis for discussion. These texts represent only the EU`s initial legislative proposals on the issues of the EU-Indonesia trade agreement, and the EU reserves the right to make further changes to the text by amending, supplementing or removing it at any time. For explanatory purposes, proposals for texts are published, accompanied by brief fact sheets on the various topics. On the other hand, as soon as it comes into force, EFTA states will remove the vast majority of tariffs on Indonesian products. For Indonesia, the removal of tariffs on exports of agricultural products such as palm oil, textiles and electrical machinery is a great asset. However, palm oil is subject to partial quotas and a sustainable palm oil production plan included in the sustainable development chapter of the agreement. Nevertheless, bilateral trade between the EU and Indonesia lags behind their size and other ASEAN countries. In 2009, the EU exported EUR 2 billion and introduced EUR 1.3 billion in commercial services with Indonesia, or 8.7% of total trade between the two companies. The situation is similar with respect to DL trends. In 2009, EU stocks amounted to EUR 17.5 billion in Indonesia and EU flows to Indonesia amounted to EUR 1.5 billion. Between 2000 and 2009, FDI inflows to ASEAN averaged 9.1 billion euros per year.

The European Commission has embarked on a „scoping“ that will end before full trade negotiations begin. Such negotiations are expected to begin in November 2011. Indonesia has been a member of the WTO since 1995 and enjoys trade preferences granted under the EU`s Generalised Preference System (GSP), which accounts for about 30% of total imports from Indonesia. The EU is negotiating a free trade agreement with Indonesia to facilitate and create market access, strengthen EU-Indonesia trade and increase direct investment. The aim is to conclude an agreement similar to what the EU achieved in its trade agreements with Singapore in 2014 and Vietnam in 2015. This is already the case with the Indonesia-Australia Comprehensive Economic Partnership Agreement (CEPA), a major trade agreement between Indonesia and Australia, which came into force in July 2020. In factories since 2005, tariffs on 94% of product lines traded between the two countries have been abolished. As a large-scale free trade agreement, EFTA-Indonesia includes trade in goods, trade in services, investment, intellectual property rights, public procurement, competition, trade and sustainable development and cooperation.

In the area of trade, EFTA states lift all tariffs on imports of industrial products, including fish and other seafood originating in Indonesia. Indonesia will phase out or reduce tariffs on industrial products, including fish and other seafood, originating in an EFTA state.