EAEU and Indonesia to start negotiations on concluding free trade agreement

The Supreme Eurasian Economic Council has adopted a decision to start negotiations with the Republic of Indonesia on concluding a free trade agreement.

"Indonesia is the ASEAN’s largest economy and the fourth most populous country in the world. The work conducted by the joint research group has testified that trade relations between the EAEU Member States and the Republic of Indonesia have substantial potential for development", noted Andrey Slepnev, Minister in charge of Trade of the Eurasian Economic Commission. "Besides, according to estimates, the tariff liberalization under the free trade agreement will have a positive impact on the economic growth of contracting parties".

It is estimated that establishing a free trade regime will contribute to increasing trade in agricultural and industrial goods, maximizing mutual benefits. Along with that, the Minister has clarified that according to the model data, grain crops, meat, ice cream, chocolate, alcoholic beverages, fish and seafood, mineral fertilizers, rubber and plastic products, motor vehicles, coal, paper goods and metal products have the maximum potential for growth in the EAEU countries' exports.

At the same time, special aspects of each State's economic development will be taken into consideration when holding negotiations and defining optimal conditions for market access.

For reference

According to the statistics, the trade turnover between the EAEU and Indonesia increased by 41.5% to 3.7 bln US dollars in 2021 compared to 2020. Along with that, exports increased by 34.1% and imports grew by 44.5%.

The joint research group to study the expediency of concluding a free trade agreement between the Eurasian Economic Union and its Member States, on the one part, and the Republic of Indonesia, on the other part, was formed on the basis of Disposition No. 19 of the Eurasian Economic Commission’s Council dated September 11, 2020.

Information Support Section of the EEC Organizational Support and Protocol Department