An upcoming European Indonesian agreement exempt 80% of Jakarta exports from customs duties
Brussels on September 22 / WAM / a trade agreement will be signed tomorrow between the European Union and Indonesia to exempt about 80% of Indonesian exports to the Union from customs duties, which will give a strong boost to sectors such as shoes, textiles, fish products and palm oil, while Europe will benefit from facilities to enter its products to a huge Indonesian market that includes more than 280 million people, and a economy registered A 5% growth annually.
Indonesia and the European Union are preparing to sign a Shamilgda trade agreement on the Indonesian island of Bali, after negotiations that have continued since 2016 on the “Comprehensive Economic Partnership Agreement” (CEPA), which aims to reduce commercial barriers and enhance economic partnerships between the two sides.
The agreement will sign the Indonesian Economy Minister Erlaga Hartarto and European Commissioner for Slovenian Trading Maros Shivkovic.
The move comes at a time when negotiations witnessed a remarkable acceleration after the decisions of the previous US administration to impose high customs duties on many products, prompting Jakarta to search for stable commercial alternatives with Europe.
Brussels also sought to diversify its partnerships in light of what Hartarto described as “customs war and protection policies.”
The value of trade exchanges between the two parties is about 30.1 billion dollars (25.6 billion euros) in 2024, making the European Union the fifth commercial partner for Indonesia.
Despite these gains, sensitive files still arouse controversy, most notably the issue of forest removal, as the European Union has adopted legislation to reduce the import of products related to the removal of forests such as palm oil, coffee, cocoa and soy, which sparked Jakarta’s discontent, which is one of the largest exporters of palm oil globally. Despite the promises of the European Commissioner to grant Indonesia “a special treatment” in this field, the environmental activists fear that the agreement will accelerate the pace of forest removal due to the increasing demand for Indonesian products.
Relations between the two sides also witnessed differences in front of the World Trade Organization over the ban of Indonesia, the export of nickel ore and the European Union imposed compensatory fees on Indonesian biofuels imports.
Despite the upcoming signature, the agreement will not enter into force until after its approval by the parliaments of the 27 members of the European Union and the Indonesian Parliament, with expectations that its implementation actually began in 2027, to form a new station in the path of economic relations between Europe and the largest economy in Southeast Asia.
Pro/ Z/ WAM
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related
