The EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) is a major bilateral agreement between the two economies that aims to increase trade and investment. The CEPA is set to open up new opportunities for businesses, create new jobs, and promote sustainable growth.
The EU is Indonesia`s second-largest trading partner, with total trade worth €28.6 billion in 2019. The CEPA agreement is expected to enhance this economic relationship and facilitate further growth. It covers many areas such as trade in goods and services, investment, and intellectual property rights.
The trade in goods section of the CEPA agreement aims to reduce tariffs on products covering a wide range of sectors, including pharmaceuticals, chemicals, and automotive goods. This will make these products more affordable for consumers and increase the market demand for them, leading to the growth of these sectors.
The agreement also promotes the mutual recognition of standards that will make it easier for businesses to trade in goods and services. It will help to increase the level of trust between the two economies and provide a framework for regulatory cooperation between them.
The CEPA agreement also aims to increase investment flows between the EU and Indonesia. This will help to create new job opportunities and boost economic growth. The agreement provides a framework for investors to operate in a stable and predictable business environment with access to dispute settlement mechanisms.
The protection of intellectual property rights is a crucial component of the CEPA agreement. It aims to protect the rights of inventors, creators, and other innovators who invest in research and development. This will help to encourage innovation and drive economic growth in both economies.
Overall, the EU-Indonesia Comprehensive Economic Partnership Agreement is set to benefit both economies. It will increase trade and investment flows, create new job opportunities, and promote sustainable growth. As the two economies continue to deepen their economic relationship, there is great potential for further cooperation and collaboration between them in the future.