EFTA is a regional economic organization founded in 1960, with four member states in Northern and Central Europe, namely Iceland, Liechtenstein, Norway and Switzerland. Three of the EFTA States, except Switzerland, also participate in the European Union single market through the European Economic Area (EEA) Agreement.
The agreement was signed by Indonesian Minister of Trade Enggartiasto Lukita along with four ministers from the EFTA Member States, Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research of Switzerland, Johann N. Schneider-Ammann; Minister for Foreign Affairs and External Trade of Iceland Gu?laugur r r?arson; Minister of Foreign Affairs, Justice and Culture of Liechtenstein, Aurelia Frick; and Minister of Trade and Industry of Norway Torbj?rn R?e Isaksen.
"We will launch a new chapter on bilateral economic relations toward a brighter future," said Lukita.
IE-CEPA is Indonesia`s first modern trade agreement with a regional economic organization in Europe. The agreement does not only enlarge market access for trade in goods, services and investment, but also takes into account the sustainable development aspect and capacity building cooperation of trade among the parties.
Schneider-Ammann also expressed a similar view, representing the four Ministers from the EFTA States. "I am proud that EFTA is the first Indonesian partner in Europe to establish a trade agreement," he said.
IE-CEPA has been part of the Government of Indonesia`s efforts in tapping the non-traditional market in Europe. Its implementation will support the increasing Indonesia-EFTA trade, whose average growth exceeded seven percent over the last five years. In 2017, the Indonesia-EFTA trade was valued as much as USD2.4 billion, with exports from Indonesia as much as USD1.31 billion, along with an USD212 million trade surplus.
IE-CEPA will expand the Indonesia-EFTA market access through more than 90 percent of total tariff elimination for major products, including fisheries, textiles and footwear, agro-based products including palm oil, furniture, machinery and electric machinery, as well as pharmaceuticals. The agreement will also support market access for employment for Indonesia`s professionals to work in EFTA States along with better market access for service in telecommunications, distribution, education and construction.
"By signing this agreement, Indonesia and the EFTA countries demonstrate our unwavering commitment to an open, fair, and rules-based multilateral trading system, which we believe continues to be highly relevant under the current and future global economic context," Lukita remarked on the relations between IE-CEPA and the recent global economy context.
The Indonesia-EFTA CEPA negotiation was initiated in 2011 and concluded after 15 rounds of negotiations. Indonesian Minister of Trade together with four ministers from the EFTA States previously signed a Joint Statement that marked the conclusion of the negotiations in Geneva, Switzerland, on November 23, 2018.
IE-CEPA will go through the ratification process in the five signatory countries, including Indonesia, before entering into force in the respective territories of the parties. Indonesia is the third country in Southeast Asia to sign a trade agreement with EFTA after Singapore and the Philippines.
Reporting by Yuni Arisandy
Editing by Yoseph Hariyadi
Reporter: Yuni Arisandy Sinaga
Editor: Fardah Assegaf
Copyright © ANTARA 2018
