Reference News Network September 24 report - According to the Bloomberg News website on September 23, the European Union and Indonesia have reached a trade agreement that will eliminate almost all tariffs on goods or reduce them to near zero, promoting relations between partners at a time when US President Donald Trump is disrupting global business.

Maros Sefcovic, EU Commissioner for Trade and Economic Security, told Bloomberg News reporters in an interview that the agreement will also remove restrictions on transactions of key raw materials. He added that European exporters will save about 600 million euros in tariffs because of the agreement.

Sefcovic said, "We are truly opening a new chapter of immense scale. Indonesia is the largest economy in Southeast Asia, with an economy larger than the combined total of Vietnam, the Philippines, and Thailand. Our trade with Indonesia still has real potential."

At a time when the United States, the EU's largest trading partner, imposes a 15% tariff on most EU exports, reaching an agreement with Indonesia is crucial for the EU to diversify its supply chains (especially raw material supply chains) and open up new markets.

EU officials have intensified negotiations with some of the world's largest economies, including India, and have already concluded negotiations with the Mercosur group, including Brazil and Argentina. The EU has also accelerated negotiations with Southeast Asian countries such as Vietnam, the Philippines, and Thailand.

The agreement between the EU and Indonesia will cut tariffs on 96% of goods to zero within five years. This is expected to increase EU exports to Indonesia by at least 30%, or about 3 billion euros.

Officials said that EU car tariffs will be reduced to zero within five years from 50%, while tariffs on machinery and electrical appliances will be reduced to zero from 30% in the short term. Agriculture and food will also benefit from trade liberalization.

The agreement needs to be approved by EU member states, the European Parliament, and Indonesia's legislative body to come into effect. (Translated by Zheng Guoyi)

Original: https://www.toutiao.com/article/7553567754310205962/

Statement: This article represents the views of the author. Please express your attitude by clicking on the 【up/down】 buttons below.