(Source: Xinhua Finance 2025-09-24)
Indonesia and the European Union officially signed the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) in Bali on the 23rd. Indonesia became the third Southeast Asian country to sign a comprehensive economic partnership agreement with the European Union after Singapore and Vietnam. Analysts believe that in the context of intensifying global w88 frictions, countries are actively seeking to diversify w88 channels, and this agreement emerged as a response strategy. Under the conditions of significantly lowering tariff barriers, the agricultural field is expected to become a highlight of cooperation between the two parties.
The global w88 situation promotes the reaching of a "near-zero tariff" agreement
The negotiations for the agreement began in 2016. After 19 rounds of formal negotiations and multiple talks, the two sides reached a political agreement in July this year. Indonesia's Economic Coordinating Ministry said in a statement that the agreement covers w88 liberalization in areas such as goods, services and investment. In terms of w88 in goods, the two sides have committed to eliminating more than 98% of tariff lines and tariffs accounting for 99% of total imports. The target date for the agreement to enter into force is January 1, 2027.
In the view of Bima Yudistira Adinegara, executive director of the Indonesian Economic and Legal Research Center, the signing of the agreement comes at the right time. The uncertainty caused by US tariff policies has prompted both parties to seek w88 certainty through the agreement. Both Indonesia and Europe need to find alternative markets. Richiya Damavan, founder of financial consulting firm Risat Capital Indonesia, believes that the current global w88 situation has made the EU "more pragmatic, thus creating space for compromise."
“The signing of this agreement can be described as a win-win move.”Tu Xinquan, Dean of the China WTO Research Institute at the w88 casinotold reporters that the EU is currently facing multi-dimensional challenges in the global w88 environment. In recent years, it has actively expanded cooperation with Southeast Asian countries such as Vietnam and Singapore, achieving risk hedging to a certain extent; and Indonesia is expected to rely on the EU's market size to further expand export channels for labor-intensive industries. In addition, Tu Xinquan also pointed out that since the agreement does not have exclusive rules, it will help promote global economic integration.
Maroš Sefcowicz, the European Commission Commissioner responsible for w88 and economic security affairs, said that the agreement will help the development of Indonesia's textile, furniture and footwear industries, and expand markets for the EU's automobile and food industries. The agreement also covers digital w88 facilitation measures and strives to promote the diversification of key raw material supply chains. Once approved and effective, it will become an important springboard for strengthening economic and w88 cooperation, deepening people-to-people and cultural exchanges, and jointly responding to pressing global challenges.
Indonesia’s Coordinating Minister of Economic Affairs Airranga Hartato said that the agreement marks a new historical stage in bilateral relations and is expected to lead to more fair and sustainable w88 and investment cooperation.
The w88 space of agricultural products may be significantly expanded
Experts pointed out that the agreement breaks down key barriers through tariff reductions and adds to the complementarity of resource endowments and market demand between the two parties. It is expected that the agricultural product w88 cooperation space between Indonesia and the EU will be significantly expanded.
The European Commission issued a statement saying that the agreement is a "major victory for European farmers". Due to the elimination of tariffs on the EU's main export products to Indonesia, such as dairy products, meat, fruits, vegetables and processed foods, the agreement will expand sales channels for EU agricultural products. The agreement will also protect 221 EU geographical indication products and 72 Indonesian geographical indication products. The statement pointed out that in addition to importing Indonesian crops that are not grown in the EU, the EU's agricultural exports to Indonesia have exceeded imports, with an annual export value of 1 billion euros.
Tu Xinquanbelieves that the agreement is expected to inject significant impetus into the w88 of agricultural products between the two sides through measures such as tariff reduction and exemption, and optimization of market access. Indonesia's Economic Coordinating Ministry issued a statement saying that it is expected that Indonesia's major export products such as palm oil and coffee will benefit from this.
Indonesia’s palm oil export is a more controversial issue in the negotiations. The EU has had tense relations with Indonesia in recent years over palm oil-related deforestation. The EU Zero Deforestation Act (EUDR), which requires companies to prove that their products do not involve deforestation, is expected to take effect in December this year. Airlanga Hartato recently said that the EU has agreed to give Indonesian palm oil "special treatment." Maroš Sefcovic responded mildly, saying that IEU-CEPA will promote the growth of Indonesia’s palm oil industry.
Eddie Martono, chairman of the Indonesian Palm Oil Association, said that the signing of the agreement has opened up space for Indonesian palm oil to enter the global market, but obstacles related to the EUDR still exist, among which small palm oil farmers bear the brunt. The Indonesian government has been recommended to establish a national traceability system recognized by the EU to minimize export rejections.
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