Eu Free Trade Agreement Indonesia

For the EU, Indonesia is the 24th largest source of imports (0.9%) and thirty the largest export target (0.6%). Within the ASEAN region, Indonesia ranks fourth in terms of overall trade. [1] In the face of the economic challenges posed by the pandemic, free trade agreements (FTA) allow Indonesian exporters to recover. The use of free trade agreements offers local businesses a compelling list of benefits, including access to new markets, tariff concessions, and the ability to raise goods faster and easier. By focusing on opportunities in overseas markets, free trade agreements can also promote supply chain diversification. A section on sustainable development is included in the agreement. Indonesia currently enjoys trade preferences with the EU under the Generalised System of Preferences, which grants imports of products into the European Union either duty-free access or tariff reductions. Currently, almost 40% of Indonesia`s €13 billion of exports to the EU market are eligible for preferential treatment. [9] The real text of the final agreement will be the result of negotiations between the EU and Indonesia. The full text of the final agreement will be published after the conclusion of the negotiations, well before its signature and ratification.

For EFTA-Indonesia trade statistics, see the EFTA Trade Statistics Tool This article is about trade relations between Indonesia and the European Union. After the signing of the agreement, Indonesia and the EU will move on to the ratification phase of the agreement as part of their respective processes. Finally, this will lead to the implementation of the FLEGT APA which will take place when both parties assess that the approval is ready. [6] The European Union and Indonesia have established strong trade relations, with bilateral trade amounting to around €25 billion in 2012, resulting in a considerable trade surplus of €5.7 billion for Indonesia and the European Union. In recent years, trade between the EU and Indonesia has been marked by an upward trend. While total trade still amounted to almost €16 billion in 2009, it already amounted to €23.5 billion in 2011. [1] Before starting talks, the EU conducted a joint scoping exercise with Indonesia to determine the scope and level of ambition of a future trade agreement. The exercise was successfully completed in April 2016 and in July 2016 EU governments authorised the Commission to start negotiations. On the other hand, the EFTA States will eliminate the vast majority of customs duties on Indonesian products as soon as they enter into force.

For Indonesia, the elimination of tariffs on the export 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, which is included in the sustainable development chapter of the agreement. These bilateral trade and investment agreements were conceived as building blocks for a future agreement between the regions. The objective of Chapter 4 is to improve the legal framework for investors from EFTA countries and Indonesia who invest in the markets of the other. This objective is achieved through the granting of non-discriminatory rights of establishment (“commercial presence”) in sectors not covered by the Chapter on Trade in Services and listed in Annex XVI. In some of these sectors, the parties have introduced into their national legislation reservations as to the treatment of the infringement due to restrictions. The chapter regularly examines how the commitments of the Contracting Parties can be developed. Background to bilateral trade relations with ASEAN (Association of South East Asian Nations) This study is an in-depth study of ASEAN and the EU`s plan to create a free trade agreement.

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