Bali: The European Union (EU) and Indonesia are set to sign a significant trade agreement in Bali. The agreement will be signed by EU Trade Commissioner Maros Sefcovic and Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto, marking a milestone in economic relations between the two regions.
According to Emirates News Agency, the agreement will grant Indonesia zero tariffs for 80% of its export products to the EU, along with the removal of non-tariff barriers. This development is expected to enhance market access for the EU's agricultural and manufactured goods. Last year, bilateral trade between the EU and Indonesia was valued at $30.1 billion, with Indonesia recording a $4.5 billion trade surplus, as per Indonesian data.
Indonesia's primary exports to the EU comprise palm oil, footwear, and textile products. The Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA) aims to strengthen economic ties between Indonesia and the 27-member European bloc. This agreement represents the EU's third trade pact with Southeast Asian nations, following similar agreements with Singapore and Vietnam. It is anticipated to further open EU access to Indonesia's market, which consists of approximately 280 million people.