"For example, apparel will receive zero tariffs during the Entry Into Force (EIF) phase. Therefore, footwear, apparel, textiles, processed foods, palm oil, and its derivatives will all benefit from Entry Into Force (EIF)," the ministry's Director General of International Trade Negotiations, Djatmiko Bris Witjaksono, stated on Monday.
He explained that the IEU-CEPA covers market access for goods, with both parties committing to eliminating tariffs on 98 percent of the total tariff items and 99 percent of the total import value.
He explained that several products have optimal market access due to comparative advantage, namely footwear, textiles and textile products, fisheries, processed foods, palm oil and its derivatives, including biodiesel, electronics, agricultural and forestry products, and steel.
Witjaksono stated that this agreement is Indonesia's most comprehensive bilateral trade agreement, comprising 25 chapters covering elements of liberalization, trade facilitation, cooperation, and emerging issues.
Based on its commitments, 98 percent of all tariff lines will receive preferential treatment, with a few exceptions, he stated.
"Around 99 percent of all Indonesian exports to the EU will receive preferences. The timing (of implementation) varies, but almost all preferences become effective from the EIF phase. Some are in their third year, while others are in their fifth year, and negotiations are still ongoing," he stated.
A major milestone in finalizing the agreement was marked by the signing and exchange of letters between the Indonesian Government and the European Commission, a high-level political agreement to accelerate the finalization of IEU-CEPA negotiations.
The exchange of letters was conducted by Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, and the European Commission's Trade Commissioner, Maroš Šefovi.
Indonesia, with a population of over 285 million, offers a large and dynamic market for its trading partners.
Meanwhile, the European Union, home to over 400 million people, is also one of the world's major economic powers.
Under the IEU-CEPA, around 80 percent of tariff lines will be eliminated, offering broader trade and investment opportunities for both parties.
The completion of IEU-CEPA negotiations was officially announced during a bilateral meeting between Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels.
Both parties affirmed their commitment to strengthening their strategic partnership, including accelerating the completion of the IEU-CEPA.
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Translator: Aji Cakti, Resinta Sulistiyandari
Editor: Azis Kurmala
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