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Indonesia, South American bloc to start trade talks
Indonesia hopes to use the deal to boost exports to Mercusor, a trade block comprising Argentina, Brazil, Paraguay and Uruguay.
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Trade Minister Muhammad Lutfi, ministry secretary-general Suhanto and advisor Wishnutama Kusubandio lead the preparation meeting for the Dubai Expo at the Trade Ministry’s headquarters in Jakarta in this file photo. (Courtesy of Biro Humas Kemendag)
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ndonesia aims to hold the first round of negotiations on a comprehensive economic partnership agreement (CEPA) with the four-member Mercosur trade bloc in the first quarter of 2022.
According to a statement issued by the Trade Ministry on Dec. 16, negotiators settled on a framework CEPA agreement on Dec. 9 after two years of early negotiations between Indonesia and Mercosur, which consists of Argentina, Brazil, Paraguay and Uruguay.
Thus, ministers from Indonesia and Mercosur signed on Dec. 16 an agreement to begin CEPA talks, although the bloc was less clear on the timeline, saying in a separate statement that officials would “hold the first round of negotiations at the earliest opportunity.”
The IM-CEPA is the latest installment of Indonesia’s trade deal-making strategy meant to boost exports to so-called nontraditional markets, which are those beyond major global importers like the United States, China and Western Europe.
Indonesia has passed CEPAs with Australia and the four-member European Free Trade Association (EFTA) and plans to pass similar trade deals with South Korea and the United Arab Emirates (UAE).
“Through the CEPA, Indonesia and the Mercosur bloc can stimulate economic development, expand supply chains and improve public welfare on both sides,” said Trade Minister Muhammad Lutfi.
Mercosur said in its joint statement that negotiations would cover agreed areas of interest to both sides, including market access, cooperation and rules to facilitate trade and investment, taking into account each other’s sensitivities.
