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Govt to conclude Eurasian FTA next year amid geopolitical strain
The government aims to conclude the free trade agreement (FTA) with the Eurasian Economic Union (EAEU) by next year, but experts warn that potential delays might come due to geopolitical tensions and the critical election year.
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The Indonesian Negotiating Group chairman, Indonesian Trade Ministry bilateral negotiations director Johni Martha, shakes hands with the Eurasian Economic Union (EAEU) Negotiating Group chairman, Trade Policy Department division head for Special Issues in Trade Regulation Anton Tsetsinovskiy, after the second round of the Indonesia-EAEU free trade agreement negotiations in Moscow on July 28, 2023. (Trade Ministry/-)
T
he government aims to conclude its free trade agreement (FTA) with the Eurasian Economic Union (EAEU) bloc next year, as it seeks to diversify exports to non-traditional markets amid a slowing global economy.
Deputy Trade Minister Jerry Sambuaga said on Tuesday that the government had successfully concluded the second round of negotiations and it viewed that the agreement could be finalized within the expected timeframe.
Both parties first launched the negotiations on Dec. 5 last year and aimed to conclude the deliberation within two years.
“Indonesia is optimistic that the I-EAEU FTA can be sealed in 2024. We hope that the implementation will significantly enhance the bilateral economic partnership,” said Jerry in a statement on Sunday on the sidelines of the 55th ASEAN Economic Ministers (AEM) meeting in Semarang.
The EAEU is an economic union comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and the Russian Federation. The second round of negotiations took place in Moscow on July 24-26, with plans set for the third round to occur in Indonesia in November.
Indonesia went on with the negotiations amid Western sanctions against Russia for its war in Ukraine and Belarus for its involvement in the conflict.
The five countries only comprised 0.5 percent of Indonesia’s export market share in 2022, according to Statistics Indonesia (BPS) data.
