News & Trends – EFTA-Indonesia Agreement
Agreement between EFTA and Indonesia enters into force
A new agreement between the European Free Trade Association (EFTA) countries and Indonesia entered into force on 1 November 2021. The agreement will allow EFTA countries to further deepen their economic and trade relations with Indonesia.
The Economic Partnership Agreement (CEPA) between the EFTA States (Switzerland, Iceland, Liechtenstein and Norway) and Indonesia entered into force on 1 November. It is intended to further expand trade relations between the partners.
According to EFTA, the agreement will give EFTA countries access to export products such as fish and marine products, agricultural and food industry products, industrial and technical products, machinery and watches, as well as chemicals and pharmaceuticals. The CEPA is also intended to promote trade in services, e.g. for energy-related services, telecommunication services, the financial industry or through access for maintenance personnel. It also provides an improved framework for cross-border investment.
Sustainable development is a special focus. The agreement includes commitments by the contracting parties in the areas of environmental protection, fundamental rights and the sustainable management of forest resources and vegetable oil.
Changes in customs law
For Switzerland, the agreement brings about a decisive change in terms of customs clearance: Indonesia will no longer be considered a developing country once it enters into force. As a result, in future preferential imports into Switzerland will no longer require the Form A or the declaration of origin on the invoice (GSP agreement), but only the declaration of origin under this free trade agreement in order to benefit from preferential treatment (preferential tariff treatment).
According to EFTA, trade in goods between the EFTA States and Indonesia amounted to more than €1.1 billion in 2020. The EFTA States exported goods worth €628 million. For imports, this value amounted to 518 million euros.
More information on the significance of the agreement for Switzerland can be found on the website of the State Secretariat for Economic Affairs.
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