Ministers and other representatives from the EFTA States, including Iceland, and from Indonesia have signed a Comprehensive Economic Partnership Agreement (CEPA). The agreement will strengthen the economic ties and promote trade and investment between the two sides.
The CEPA was signed yesterday in Jakarta, Indonesia. It covers all areas normally included in EFTA’s comprehensive free trade agreements, such as trade in goods and services, investment, intellectual property rights, competition, government procurement, trade and sustainable development, cooperation and capacity building as well as legal and horizontal provisions.
The Agreement will provide access for major export products to Indonesia, from fish and marine products, agricultural and food industry products such as cheese, chocolates and coffee, to industrial and technical products, machinery and watches, chemicals and pharmaceuticals. It will also stimulate trade in services, e.g. for energy related services, telecommunication services, the financial industry or through access for maintenance personnel and provide an enhanced framework for trans-border investment.
The two sides previously signed a Joint Statement on 23 November 2018 in Geneva, Switzerland, marking the conclusion of the CEPA negotiations. At the signing ceremony, Gudlaugur Thór Thórdarson, Iceland’s Minister for Foreign Affairs hailed the landmark agreement. “Indonesia with its 260 million inhabitants is a rapidly growing market. CEPA with this populous nation will bring obvious benefits to Icelandic exporters. Although the negotiations were lengthy, the resulting agreement is excellent.”
Furthermore, the CEPA contains a chapter on trade and sustainable development. It includes provisions on compliance with and implementation of multilateral environmental agreements and on fundamental rights of workers. In addition, the Agreement contains provisions to promote the sustainable management of forest resources, as well as a provision concerning sustainable management of the vegetable oils sector.
The EFTA-Indonesia CEPA was signed by Mr Enggartiasto Lukita, Minister of Trade of the Republic of Indonesia, and by Mr Johann N. Schneider-Ammann, Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research of the Swiss Confederation, Ms Aurelia Frick, Minister of Foreign Affairs of the Principality of Liechtenstein, Mr. Daniel Bjarmann-Simonsen, State Secretary of the Kingdom of Norway, and Mr Hannes Heimisson, Ambassador, Iceland.