December 10, 2020...10:33 am

Indonesia Efta Free Trade Agreement

Tariff concessions are designed to enable all major Swiss export sectors to benefit from the agreement, both from industry and from producers of agricultural products. In return, Switzerland grants Indonesia duty-free access for industrial products. Tariff concessions in the agricultural sector are essentially the same as in other free trade agreements. Palm oil is one of Indonesia`s main exports. Although very little palm oil is imported from Indonesia to Switzerland (only 34 tonnes in 2019, or only 0.1% of total palm oil imports), an agreement must be balanced and reflect the interests of both parties. An uncompromising agreement in the palm oil sector would not have taken Into account Indonesia`s interests and would therefore have been doomed to failure. · The EFTA States and Indonesia intend to strengthen economic cooperation to enhance the mutual benefits of this agreement, in line with national political strategies and objectives, and to take into account different levels of economic and social development. Prior to the start of the talks, the EU conducted a joint scoping exercise with Indonesia to define the scope and ambition of a future trade agreement. The exercise was completed in April 2016 and in July 2016 EU governments allowed the Commission to start negotiations. · The EFTA states and Indonesia reaffirm, among other things, their determination to respect and effectively implement the ILO multilateral conventions and conventions they have ratified.

The two sides had already signed a joint declaration on 23 November 2018 in Geneva, Switzerland, concluding the EPA negotiations. The EPA covers all areas normally covered by EFTA free trade agreements, such as trade in goods and services, investment, intellectual property rights, competition, public procurement, trade and sustainable development, cooperation and capacity building, and legal and horizontal provisions. · The agreement contains provisions that go beyond the General Agreement on Trade in Services (GATS) with regard to financial services, telecommunications services, tourism services, recognition of qualifications, the free movement of individuals and the recognition of qualifications and qualifications and training of seafarers` crew members.