The Economic Partnership Agreement between the EFTA (European Free Trade Association) and Indonesia will enter into force on 1 November 2021. The agreement is intended to stimulate trade relations between the EFTA states and Indonesia.

For 98% of Switzerland’s current goods exported to Indonesia, all customs duties will be abolished by the end of the tariff dismantling period. The agreement also includes provisions on investment, protection of intellectual property, competition, dismantling of non-tariff trade barriers, trade facilitation, trade and sustainable development, as well as economic cooperation.

In case of palm oil, which is particularly critical from the point of view of sustainability, the agreement only provides for moderate tariff reductions within strictly limited quotas. Importers can only import palm oil on a preferential basis if they can prove that it has been produced sustainably.

More information here.

Source: Press release Federal Council