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RI-EU CEPA paves way for TPP
The Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), which is expected to come into effect within the next two years, is likely to ready Indonesia to join the US-led Trans-Pacific Partnership (TPP) in the years to come, a minister has said
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he Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), which is expected to come into effect within the next two years, is likely to ready Indonesia to join the US-led Trans-Pacific Partnership (TPP) in the years to come, a minister has said.
Trade Minister Thomas Lembong said on Tuesday that requirements for entering into the Indonesia-EU CEPA already covered around 60 to 70 percent of what was covered in the TPP, a trade pact claimed to be the most advanced such pact.
'It very much makes sense to conclude the one with the EU first so that the gap with the TPP is reduced,' he told reporters.
Voicing a similar view, EU Ambassador to Indonesia Vincent Guérend said recently that he was upbeat that the implementation of CEPA would help Indonesia prepare for the TPP.
'The text of CEPA is also very ambitious. So if Indonesia is already with the EU, it will be very prepared for the TPP,' he said.
EU CEPA covers a number of trade and business issues, including the reduction of trade barriers and liberalization for government procurement ' two points that are also included in the TPP framework.
The 28-member trading bloc has already concluded a CEPA with Vietnam and is in the process of drawing one up with Malaysia.
Under the EU-Vietnam CEPA, customs duties in the two countries will be reduced to zero for all products except sensitive agricultural items, and EU companies will be able to bid on Vietnamese public offers by national ministries, state-owned enterprises and the Ho Chi Minh City and Hanoi municipal governments, among others.
Indonesian Ambassador to the World Trade Organization (WTO) Iman Pambagyo explained on Tuesday that discussions on the Indonesia-EU CEPA were still at an early stage, with talks centering on the lifting of export restrictions and sustainable development issues.
'The main challenge is that the EU is already dealing with Vietnam and Malaysia, so they basically already have a mode. It is up to us to negotiate,' he said.
Iman said that the Trade Ministry had previously asked to include capacity-building in the points of the agreement to boost the readiness of local industries to meet EU standards.
The Indonesia-EU CEPA is expected to be implemented within two years, according to Thomas.
