WT/REG464/M/1  
 
14 December  2023 
(23-8573) Page: 1/4 
Committee on Regional Trade Agreements  
Hundred and Eighth Session    
 
  
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN  
THE EFTA STATES AND INDONESIA  (GOODS AND SERVICES)  
NOTE ON THE MEETING OF 21 NOVEMBER  2023 
Chair: Ambassador H.E. Ms. Clare KELLY (New Zealand)  
1.1.  The 10 8th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the 
"Committee") was convened in Airgram WTO/AIR/RTA/3 4/Rev. 1 dated 10 November 2023.  
1.2.  Under Agenda Item I.V, the CRTA considered the goods and services aspects of the 
Comprehensi ve Economic Partnership Agreement between the EFTA States and Indonesia . 
(hereinafter "the Agreement"  or "CEPA" ). The Chair stated that the Factual Presentation had been 
prepared by the Secretariat on its own responsibility in full consultation with the Pa rties, in 
accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements 
(document WT/L/671).  
1.3.  The Agreement had entered into force on 1  November 2021 for all the Parties. It had been  
notified to the WTO by the Parties on 26 April 2022 under Articles  XXIV:7(a) of the GATT  1994 and 
Article  V:7(a) of the GATS as a broad -based agreement coveri ng trade in goods and services , in 
documents WT/REG464/N/1 and S/C/N/1101 respectively.  The text of the Agreement, together with 
its Annexes, was available on the Parties' official websites and in the WTO RTA database.  The Factual 
Presentation, document  WT/REG464/1, and questions and replies, document WT/REG464/2, ha d 
been distributed.  
1.4.  The representa tive of Switzerland, speaking on behalf of the EFTA States – Iceland, 
Liechtenstein, Norway, and Switzerland  – thank ed the Secretariat for the Factual Presentation.  The 
history of th e Agreement date d back to 2011, when the EFTA States and Indonesia had convened in 
Jakarta for their first round of negotiations. Seven years and thirteen rounds later, the CEPA had 
been signed on 16 December 2018 in Indonesia. At the time, it was the 29th Free Trade Agreement 
signed by the EFTA States  and another one had since been signed with Moldova. The CEPA  had 
entered into force on 1st November 2021 after a ratification process which, in Switzerland, had 
included a public vote. The thorough public discussion around the CEPA leading up to the vote and 
its approval by Swiss voters provide d strong democratic legitima cy to the Agreement and its 
implementation.  
1.5.  The CEPA was a broad -based agreement with comprehensive coverage, including chapters on 
trade in goods, trade in services, investment, intellectual property rights,  competition, trade and 
sustainable development, trade facilitation, dispute settlement, and a Chapter on cooperation and 
capacity building.  In trade in goods, the EFTA States had abolish ed all customs duties on imports of 
industrial products, including fi sh and other marine products originating from Indonesia. The 
Agreement safeguard ed sensitive agricultural products on both sides, while also providing increased 
market access for basic and processed agricultural products. In the area of rules of origin, th e 
Agreement allow ed for accumulation with all types of products , industrial and agricultural , among 
the Parties , as well as for the possibility of self -declaration of origin. The Agreement contain ed 
detailed provisions on trade facilitation, while SPS and TBT rules buil t upon the relevant WTO 
Agreements.  WT/REG464/M/1  
 
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  1.6.  The trade in services Chapter encompasse d all four modes of supply and closely align ed with 
the GATS approach. It was complemented by separate annexes with additional disciplines specific 
to the sectors  of financial services, telecommunication services, movement of natural persons 
supplying services, recognition of qualification of service suppliers, recognition of certificates of 
competency and training of seafarers on board vessels registered in Switzerlan d, and tourism and 
travel services.  The Agreement improve d the legal framework for investors from the EFTA States 
and Indonesia in non -services sectors who s ought  to invest in each other 's markets by affording 
them non -discriminatory rights of establishmen t. While the Parties d id not grant market access for 
government procurement under the CEPA, they nevertheless had pledged to improve their mutual 
understanding of each other 's laws and regulations in th at field. They had also committed to 
publishing legislation and decisions relating to government procurement, while leaving open the 
possibility for further negotiations.  
1.7.  Recogni zing the complementary relationship between economic development, social 
development and environm ental protection in achieving sustainable development, the Agreement 
emphasi zed the role of trade in fostering inclusive economic growth and reducing poverty. The 
Parties had reaffirm ed their commitment to multilateral environmental and labour agreements a nd 
principles. They had further commit ted not to weaken or reduce levels of environmental or labour 
protection provided by their domestic laws, regulations, or standards with the sole intention of 
encouraging investment or seeking competitive trade advanta ge. The Chapter also contain ed 
commitments regarding the sustainable management of forests, fisheries, and the vegetable oils 
sector. In addition, the Agreement fores aw that palm oil c ould only benefit from tariff concessions if 
sustainability criteria were met, thereby creating a concrete incentive for the Indonesian partner to 
continue its efforts towards the sustainable operation and management of the palm oil sector.   
1.8.  Reflecting the close bilateral and economic ties pre -dating the CEPA, the Agreement al so had 
a dedicated Chapter on cooperation and capacity building. It laid down the necessary framework for 
the Parties  to build upon and complement their existing and planned bilateral cooperation initiatives 
and activities. In doing so, th e Chapter h eld the promise of facilitating the implementation of the 
CEPA, while supporting Indonesia 's efforts to achieve sustainable economic and social development.  
1.9.  In December 2022, the EFTA States and Indonesia had held their first Joint Committee Meeting 
preceded by the first meeting s of the Sub -Committee s on Trade in Goods and on Cooperation and 
Capacity Building. The Parties had confirmed the good functioning of the Agreement, taken stock of 
progress and challenges in meeting the objectives regarding trade and sustainable development, 
and discussed  further work on monitoring preference utilisation of the CEPA. In addition, the EFTA 
States and Indonesia had discussed the practical impl ementation of the Chapter on cooperation and 
capacity -building and  agreed on activities to be implemented between them .  
1.10.   It was still too early to assess the impact of the CEPA on trade flows, as only one full year of 
statistics was available since its ent ry into force on 1st November 2021. Nonetheless, it was 
noteworthy that in 2022, bilateral merchandise trade had exceeded EUR 1.5 billion, the highest level 
ever recorded. That year, the EFTA States had mainly exported mineral fuels, machinery, 
pharmaceuti cal products and organic chemicals to Indonesia, while their main imports had been 
footwear, apparel and clothing accessories, nickel and articles thereof and electrical machinery.  
1.11.   In the preceding  year, both imports from and exports to Indonesia , excluding gold , had surged 
by 39%. In 2022, Indonesia show ed a positive trade balance with each of the EFTA States, resulting 
in a trade surplus of nearly EUR 200 million. Admittedly, the entry into force of the CEPA had 
coincide d with the reopening of economies after the COVID -19 pandemic. Nevertheless, they were  
convinced that such performance would have not  been possible without the CEPA.  Moving forward, 
the objective of the Parties wa s to provide furthe r evidence o n reduced trade costs for exporters 
under the CEPA through the analysis of preference utilisation. In partnership with Indonesia, they 
would endeavour to report on th ose aspects in forthcoming editions of their publicly accessible EFTA 
FTA Moni tor. 
1.12.   In conclusion, the CEPA open ed up promising economic prospects for all Parties to the 
Agreement. Not only d id it enhance market access and prevent discrimination against businesses, 
but it had also provide d opportunities and improvements in sustainable development by establishing 
rules aimed at ensuring that both the respect of labour rights and the protection of the environment 
were fully taken into account in the preferential trade relationship established  by the Agreement.  WT/REG464/M/1  
 
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  1.13.   He thank ed the Members who had sent written questions ahead of th e meeting , namely  
Canada, the United Kingdom and Japan – and to which they had provided  answers , and looked 
forward to hearing any remarks Members  might have.  
1.14.   The represent ative of  Indonesia  welcomed EFTA's comprehensive statement which  had 
clarified the scope and objectives of the CEPA and expressed his sincere appreciation to EFTA for the 
excellent cooperation it ha d shown throughout the consideration process.  Indonesia al so thank ed 
the Secretariat for preparing the Factual Presentation, as well as Canada, the UK and Japan for their 
insightful questions that had enriched the discussions.  
1.15.   It was important to emphasize the comprehensive nature of t he Agreement, which cover ed 
trade in goods and services, investment, intellectual property rights, competition, public 
procurement, trade and sustainable development, legal and horizontal provisions, as well as a 
Chapter on cooperation and capacity building. Th e broad scope reflect ed a shared commitment to 
building a strong and inclusive framework that addresse d the many facets of modern trade relations.  
1.16.   One of the significant benefits of the CEPA for Indonesian exporters had been  the opening of 
market access to EFTA countries throug h the elimination of import duties. Starting 1 November 
2021, Iceland had eliminate d import duties on 94% of its tariffs, Norway 91% and Switzerland and 
Liechtenstein 82% each.  Indonesia ha d reciprocated by removing 80% of tariffs for exporters from 
EFTA s ince the entry into force of th e Agreement. Th at proportion w ould continue to increase to 90% 
by 2026 and reach 98% by 2033. Th e reciprocal approach had demonstrate d Indonesia's 
commitment to fostering a balanced and mutually beneficial trade relationship,  promoting economic 
growth and prosperity for both Parties.  
1.17.   Indonesia ha d made commitments in 95 service s sub-sectors, including business services, 
communications, construction, finance, distribution, education, environment, health, tourism and 
transportat ion. Its commitment to creating an open and conducive environment for foreign 
investment was reflected in an average foreign equity participation rate of 49%.  As an added benefit 
of the CEPA, Indonesia and Switzerland ha d signed an Agreement on the Exchang e of Young 
Professionals, which had been  implemented on 5 March 2022. With its ratification, Indonesia's 
commitment to "installers" now extend ed to Switzerland. Th at initiative demonstrate d their 
commitment to foster people -to-people exchanges and the deve lopment of young professionals as 
part of their economic partnership.  
1.18.   While it was too early to comprehensively assess the impact of the CEPA, early indicators 
showed promising developments in the Parties'  goods trade performance. In 2021, total trade 
between Indonesia and EFTA had reached USD 2.3 billion. Building on th at foundation, he was 
pleased to share that in 2022, with the CEPA into force since November 2021, the Parties'  bilateral 
trade ha d experienced a notable surge, reaching USD 3.19 billion . Furthermore, total trade in 
services between the two sides was expected to reach USD 1.11 trillion in 2022.  
1.19.   Finally, the Parties remain ed committed to the principles of multilateralism and fair -trade  
practices. They we re also prepared to work collaboratively with all Members of th e esteemed 
Committee to create a global trading environment that was inclusive, fair and beneficial to all.  
1.20.   The representative of Japan  appreciated the comprehensive statemen ts made by Switzerland 
on behalf of EFTA and by Indonesia. Japan recognized the great efforts of the EFTA States and 
Indonesia , and the Secretariat in having prepared the factual report, and thanked the Members for 
their comprehensive explanations. Japan s incerely appreciated the prompt reply to its written 
questions.  
1.21.   The representative of the United Kingdom  thanked  the delegation s of the EFTA States and 
Indonesia for their statement s and for the answers provided to their written questions . He wished 
the Pa rties the best of luck in the implementation of their Agreement.  
1.22.   The representative of the European Union  thanked the delegations of the EFTA States and 
Indonesia for having introduced the CEPA . Her delegation had not posed questions but followed the 
imple mentation of the Agreement with great interest.  WT/REG464/M/1  
 
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  1.23.   The Chair noted the consideration of the goods and services aspect of the Comprehensive 
Economic Partnership Agreement between the EFTA States and Indonesia  had allowed the 
Committee to clarify a number of questions and conclude oral discussion of the RTA in accordance 
with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow -up 
questions were invited to forward submissions in wri ting to the Secretariat by 27 November 2023 
and Parties were asked to submit replies in writing by no later than 11 December 2023. In 
accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as 
the minutes of the meeting would be circulated promptly, in all WTO official languages, and made 
available on the WTO database on RTAs.  
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