"Hopefully, we can finish (negotiations on) the agreement in September," Hasan remarked on Thursday.
According to the minister, the IEU-CEPA agreement can resolve various trade barriers between Indonesia and the European Union.
Hasan admitted to several challenges faced in reaching an agreement with the European Union. He said that the IEU-CEPA negotiations have been ongoing for nine years.
He noted that the agreement brings myriad benefits in a trade agreement between the two parties, such as a waiver on import duties for products from Indonesia exported to European Union countries.
The minister pointed out that Indonesian footwear products so far exported to the European Union have been subject to import duties of five to six percent in the absence of a trade agreement.
"Meanwhile, Vietnam is able to export footwear to the European Union with zero import duty. We are losing to Vietnam. Therefore, our agreement should be completed next month," he emphasized.
Furthermore, the Trade Minister's Expert Staff for International Trade, Bara Krishna Hasibuan, stated that the European Union, with its large market, is an important trading partner for Indonesia and vice versa.
Hence, he affirmed that both parties have committed to completing the negotiations soon.
Hasibuan underlined that the trade agreement between Indonesia and the European Union will bring numerous benefits, not only in terms of tax and import duty exemption but also address other issues, such as the European Union deforestation regulation (EUDR) and the carbon border adjustment mechanism (CBAM).
"The EU is our vital trading partner with a fairly large market. Once the agreement is completed, it will become the foundation of our trade relations, along with the EUDR and CBAM are no longer an issue," he added.
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Translator: Maria Cicilia G P, Resinta Sulistiyandari
Editor: Rahmad Nasution
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