Indonesian authorities expect to conclude a Comprehensive Economic Partnership Agreement with the European Union by September, which envisages the removal of trade barriers and the zeroing of some import duties, the European edition of the Politico newspaper reported, citing the Indonesian mission to the EU.
The mission noted that it was “optimistic“ and believes that the agreement, which has been under discussion for 9 years, should be concluded by early autumn. Julius Winkler, vice-chair of the European Parliament’s trade committee, who is involved in the negotiations, also told Politico that he believes reaching an agreement by September is realistic.
According to European Commission spokesman Olof Gill, the EU needs to “finalize the details” of market access for individual products, noting that the parties are currently focused “on further improving the EU (and Indonesia) regime for key products.”
Work on the agreement has accelerated amid the introduction of import tariffs by the United States. The EU is primarily interested in supplies of nickel ore from Indonesia to reduce its dependence on China, as well as palm oil produced in the country. For Indonesia, this agreement means expanded opportunities for exports and attracting investment and new technologies from the EU.
Earlier, European Commission President Ursula von der Leyen announced that the EU and Indonesia had reached a fundamental political agreement on a Comprehensive Economic Partnership Agreement.
In early June, Indonesian Trade Minister Budi Santoso said that the country's authorities planned to conclude negotiations on a Comprehensive Economic Partnership Agreement with the European Union and a Free Trade Agreement with the Eurasian Economic Union (EAEU) by the end of the year.