The European Union and Indonesia officially completed negotiations on a significant agreement on a comprehensive economic partnership (CEPA) and an investment protection agreement (IPA). This deal is designed to change the trade between the two countries by canceling tariffs, ensuring the safety of critically important raw materials and opening new markets for exporters from the EU.
An important milestone in the EU trade policy
after the political agreement between the President of the European Commission of Ursula von Lyaine and President of Indonesia Prabovo Subianto, both sides completed work on Cepa and IPA. These agreements strengthen the EU diversification strategy, providing new export capabilities and more reliable supply chains.
von der Lyaine said: “Our transaction with Indonesia creates new opportunities for business and farmers in a large and growing economy. It also provides us with stable and predictable supplies of critically important raw materials necessary for clean technologies and steel industry in Europe. ”
the advantages for exporters and EU farmers
cepa provides direct advantages in all sectors:
- reduction Tariffs: import duties will be canceled by 98.5% tariff positions.
- annual savings: EU exporters will save € 600 million per year on duties.
- agriculture: lower tariffs for agricultural volume goods and protection of traditional EU products.
- Refinery: competitive advantage for automakers, chemical industry and mechanical engineering
