Indonesia races to seal EU trade deal as tariff incentive expires
The EU has confirmed that Indonesia will leave the GSP from Jan. 1, 2027, after being classified as an upper-middle-income country for three consecutive years.
Indonesia is working quickly to finalize a trade deal with the European Union (EU) before its tariff benefits under the Generalized Scheme of Preferences (GSP) expire at the end of 2026. The GSP provides duty-free access for products from developing countries to the EU market, but Indonesia is set to leave this program in early 2027 after being classified as an upper-middle-income country for three consecutive years.
President Joko Widodo has instructed the cabinet to expedite negotiations for the Comprehensive Economic Partnership Agreement (IEU-CEPA) between Indonesia and the EU, according to Coordinating Minister for the Economy Airlangga Hartarto. The deal must still pass through EU procedures, including signature and approval by the European Parliament, before Indonesia can ratify it.
Negotiators are currently preparing the English text of the agreement for submission to the European Parliament. Indonesia has requested that the EU process the deal exclusively in English, deviating from the usual three-language format of English, French, and German, to expedite the process. The agreement is currently listed as being in the preparatory phase by the European Parliament.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
