Free Trade Agreement Eu Indonesia Draft

Free trade agreement (FTA) negotiations between the European Union (EU) and Indonesia have been ongoing since 2016, with the latest draft being released in October 2020. The agreement aims to strengthen economic ties between the two parties by reducing and eliminating tariffs and non-tariff barriers to trade.

The FTA covers a wide range of sectors, including goods, services, investment, intellectual property, and sustainable development. It also includes provisions on labor and environmental standards, which are crucial to ensuring that trade benefits all parties involved.

One of the key objectives of the FTA is to increase access to each other`s markets. The EU is Indonesia`s second-largest trading partner, and an FTA would boost exports of Indonesian goods such as textiles, footwear, and palm oil. Meanwhile, the EU would benefit from increased access to Indonesia`s growing middle class, which is expected to double to 140 million people by 2025.

The draft FTA includes provisions on the protection of intellectual property, including geographical indications (GIs). GIs are signs used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. For example, “Parmigiano Reggiano” is a GI for a type of cheese from Italy. The FTA would protect the use of GIs, which would benefit European producers of products like champagne, Scotch whisky, and feta cheese.

Another key aspect of the FTA is sustainable development. The draft agreement includes provisions on the protection of the environment and the promotion of labor rights. It also includes a commitment to combat climate change and promote renewable energy.

The FTA is not without its critics, however. Some have raised concerns about the impact of increased trade on the environment and local industries. There are also concerns that the FTA could lead to the exploitation of workers in Indonesia, where labor laws are not as strict as they are in the EU.

Overall, the FTA between the EU and Indonesia has the potential to boost economic growth and create new opportunities for both parties. However, it is important that any agreement is fair and equitable, and takes into account the needs of all stakeholders. As negotiations continue, it will be interesting to see how the final agreement addresses these and other concerns.

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