European Free Trade Association or EFTA signed the free trade deal with Indonesia.
The free trade deal is now signed between EFTA and Indonesia. However, the economic agreement is aimed at raising trade and investment. In addition, the free trade agreement also ended about the 8 years of negotiations.
According to the free trade deal, non-tariffs and tariff barriers will be removed for several products that are traded between EFTA countries and Indonesia. However, Iceland, Liechtenstein, Switzerland, and Norway are included in EFTA countries.
Among the traded products, Indonesian palm oil will get the full market access in Norway and Iceland. However, there will be an exception for palm products for the animal feed other than fish. In addition, Switzerland will also grant the simpler access for palm oil, but it will be under specific quotas.
In 2017, Indonesia-EFTA trade had the worth of $2.4 billion. However, Indonesia had a trade surplus of $212 million. On the other side, EFTA countries made $621 million of foreign direct investment into Indonesia at that time.
Textiles, coffee, and fish are also included among the Indonesian export products. However, these products will also get the preferential treatment.