Indonesia aims to catch up with Vietnam's trade with EU

Tanjung Priok Port in Jakarta, Indonesia. (Photo: Reuters)

Jakarta (VNA) – Indonesia's Trade Ministry is convinced that the country's foreign trade will surpass that of Vietnam after the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

Kasan Muhri, the ministry's trade policy agency chief, said on March 6 that once the agreement has been completed and implemented, Indonesia’s market access to the European Union (EU) will obtain a greater benefit than what Vietnam gets.

He said Indonesia was left behind by Vietnam, which already has a trade agreement with the EU, giving it an advantage in exporting to the European market.

Indonesia's trade with the EU in 2022 reached only 46 billion USD, as compared to 94 billion USD in trade value Vietnam recorded in the same year after the CEPA came into force, he noted.

Kasan believed that Indonesia will complete its IEU-CEPA this year, thereby enabling it to catch up with Vietnam's trade with Europe.

He underscored the importance of IEU-CEPA in opening more access for Indonesian exports since once Indonesia can export its commodities to the EU, accessing other markets becomes easier.

He emphasised that Indonesia, whose economy is greater than Vietnam, has considered and calculated that regarding its market access to the EU, it will obtain greater benefit than what Vietnam has.

The IEU-CEPA negotiation has entered its 17th round. In the current round, both sides deliberated 12 aspects of bilateral trade, including goods and services trade, investment, and cooperation in a sustainable food system, sustainable trade, and development.

Provisions on goods origins, energy and raw materials, trade technical obstacles, subsidies, intellectual property, institutional conditions, provisions on the institutional aspect, and anti-fraud clauses are also being discussed in the 17th round.

Among the 12 deliberated aspects, a consensus has been reached on cooperation for a sustainable food system, overcoming trade obstacles, and handling institutional conditions.

The negotiation will continue this year and is expected to conclude by the end of 2024./.