The Fifth Round of EU CEPA: Developed Partnership

The Fifth Round of EU CEPA: Developed Partnership

InfoSAWIT, BRUSSEL– When the capital of Belgium as center or headquarter of European Union (EU) is in rush, Delegation of Indonesia and EU did the fifth Comprehensive Economic Partnership Agreement(CEPA) on 9–13 July 2018. Chairman of Indonesian Delegation, Iman Pambagyo is also the General Director of International Trade Negotiation, Ministry of Trade, and the Delegation of EU did meeting.

Deputy Director-General of Trade, European Commission, Helena König empasided the important and strategic meaningof the meating for both sides to keep making CEPA when the world economy is in fluctuation by the raising of trade frictions, namely among those which are in good economy. In the long term, this would influence the other countries both individually and in its relation with others.

Iman thought,  apart from the mass economic situation among the big economy in the world which may take action one to another, Indonesia still believes that the approach or negotiation billaterally should be increased. It is important to keep the trust of the partners that Indonesia prioritized the constructive connection, not destructive. “Besides through CEPA, Indonesia wants to get the premium position to advantage the good moment of the world trade when the trade chaos may take place and would be decreasing,” Iman recently said in the official statement to InfoSAWIT.

Delegation of Indonesia which was supported by some ministries and institution did meeting about the trade and service issues, investment, tax, trade facility, sanitation, and phytosanitation. Besides they also discussed about the trade barries, trade security, the role of Enterprises, subsidy, sustainable trade and development, the capacity of development and economy, the regulation of where the goods were from.

He also said, the meeting with EU was ambitious enough for it related to new issues that were never discussed by Indonesia in other preference, including in ASEAN.

So both delegations still need to know more and ask the clarification that may be needed before running substantive meeting. But the access market negotiation has been running through the change of list of offers to be discussed.

“We know, there are many good progress in the fifth meeting. Some texts in the chapters are going to be confirmed. Meanwhile abouot the more sensitive issues or the new issues for Indonesia, we need clarification about what EU wants to,” he said.

Indonesian Delegations also clarified the position of Indonesia which may be offensive in some trade issues, such as, the sustainable trade and development, the economic cooperation, and the capacity development.

“We keep vocalizing our concern about palm oil issue which is always discussed in Europe. We also emphasized the special concern to what happens in Indonesia, such as, in agriculture, fishery, and access to EU markets that is limited by the expensive tariff or the difficult standard that Indonesia is hard to realize. Indonesia wants to advantage the service agreement to make the economy in Indonesia have more competitiveness,” he explained.

EU is the strategic partner for Indonesia within the total trade in both sides in 2017 reaching US$ 29 billion. On the other hand, the investment of the EU countries in Indonesia may not be potential. It reminds that Indonesia is a ‘critical mass’ in ASEAN and Indonesia should be the regional production hub for them to get into ASEAN markets (countries) and around. In 2017, the EU investment in Indonesia reached US$ 2,9 billion.

The Indonesia-EU CEPA was officially launched throughJoint Announcement in Jakarta and Brussels on 18 July 2016, then it was followed up by kick-off meeting on 20-21 September 2016 in Brussels, Belgia. The negotiation continued to the second round in January 2017 in Bali, the third was in September 2017 in Brussels, and the fourth was in February 2018 in Surakarta. It is planned that the sixth round would be done before the end of 2018 in Indonesia. (T2)


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