Today, the EU and Indonesia signed the Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA), a free trade agreement that should open a huge market to EU companies and should bring benefits for EU farmers and industrial producers while safeguarding sensitive agricultural products and ensuring environmental and social standards.
The Chair of the International Trade Committee, Bernd Lange (S&D, DE) said:
“The EU and Indonesia are reliable trading partners that can provide economic stability in the current turbulent geopolitical situation. Therefore, I am happy that negotiations on a trade agreement were concluded today. Indonesia is an emerging economic power that is already the largest economy in the ASEAN countries and has a market of over 280 million consumers. The agreement improves market conditions on both sides and the investment potential for companies. Moreover, it is a prototype of the agreements that the EU stands for: developed jointly on an equal footing, for mutual benefit and based on rules. “
The standing rapporteur on Indonesia for the International Trade Committee, Iuliu Winkler (EPP, RO), commented:
”The signing of EU-Indonesia CEPA is great news for our bilateral relations, for the future of EU – ASEAN relations and, more generally, for the rules-based global trade. The agreement will open new markets, create new opportunities and enforce critical raw materials supply chains. It will create new jobs and enforce sustainable economic growth both in Europe and in Indonesia, bringing benefits to people and companies. As INTA Rapporteur, I stand determined to work hard on the ratification process of the CEPA in the European Parliament”.
Background
The deal, after 9 years of negotiations, will give EU farmers better opportunities to sell their products in Indonesia thanks to the elimination of tariffs such as dairy products, meat, fruit and vegetables, while protecting more sensitive agricultural food such as rice.
It also foresees environmental provisions and ensures better access to critical raw materials from Indonesia towards the EU market.
The European Commission projects that, in all, EU exporters will save some €600 million a year in duties paid on their goods entering the Indonesian market.
Next steps
The text of the agreement should be published shortly. The European Parliament will examine the text and, under the consent procedure, will assess its approval, as an essential condition for its ratification .
