Hopefully, the IEU-CEPA will be finalized this September (2024).
Jakarta (ANTARA) - Negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) are nearly 90 percent complete, with the agreement expected to be finalized this month, according to Trade Minister Zulkifli Hasan.

"Hopefully, the IEU-CEPA will be finalized this September (2024)," he reiterated after attending a meeting with Commission VI of the House of Representatives (DPR) at the Parliamentary Complex, Jakarta, on Wednesday.

The minister made a similar statement on August 29, saying that negotiations on trade agreements, including IEU-CEPA, must be concluded before the new government led by President-elect Prabowo Subianto comes into office in October.

He noted that Indonesia's trade balance has posted a surplus for 51 successive months, while stressing the need to continually strengthen it by tackling trade barriers through diplomatic agreements.

Hence, Indonesia has been seeking to wrap up the nine years of negotiations on IEU-CEPA, an agreement that is expected to help both parties tackle various obstacles impeding bilateral trade, he said.

Once the agreement takes effect, he added, Indonesia can expect to have its products exempt from import duties when entering European markets.

Meanwhile, the Trade Minister's expert staff for international trade, Bara Krishna Hasibuan, said that the European Union, with its huge market, has been a crucial trading partner of Indonesia and vice versa. Therefore, the two parties have stated their commitment to finishing the negotiations soon.

In addition to making an import duty exemption possible, the IEU-CEPA is also expected to help Indonesia and the EU bridge differing views on the EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM), he added.


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Translator: Aji C, Tegar Nurfitra
Editor: Rahmad Nasution
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