WT/REG403/M/1  
 
11 December  2020 
(20-8942) Page: 1/3 
Committee on Regional Trade Agreements  
Ninety -eighth  Session    
 
 
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN  
CHILE  AND INDONESIA (GOODS ) 
NOTE ON THE MEETING OF  18 NOVEMBER  2020 
Chairm an: Ambassador H.E. Mr. Mārtiņš KREITUS (Latvia ) 
1.1.  The 9 8th Session of the Committee on Regional Trade Agreements (hereinafter  "CRTA " or the 
"Committee ") was convened in Airgram WTO/AIR/RTA/ 23/Rev.1  dated 6 November  2020. 
1.2.  Under Agenda Item C.VI of the Session, the CRTA considered the Comprehensive Economic 
Partnership Agreement between Chile and Indonesia , goods  (hereinafter "the Agreement").  The 
Chairman  stated that the Factual Presentation had been prepared by the Secretariat on its own 
respon sibility in full consultation with the Parties, in accordance with paragraph 7(b) of the 
Transparency Mechanism for Regional Trade Agreements (document WT/L/671).  
1.3.  He noted that the Agreement had entered into force on 10 August 2019. It had been notified 
to the WTO by the Parties on 1 April 2020 under Article  XXIV:7(a) of the GATT  1994 
(document  WT/REG403/N/1) as an Agreement incorporating chapters on Trade in Goods and other 
related matters. The text of the Agreement was available, together with its Annexes , on the Parties' 
official websites. The Factual Presentation on the goods aspects (document WT/REG403/1) dated 
26 August 2020 and questions and replies on this Agreement (document WT/REG403/2/Rev.1) 
dated 28 October 2020 had been distributed.  
1.4.  The represe ntative of Chile thanked the Secretariat for preparing the factual presentation of 
the Agreement , as well as Members who ha d shown interest by presenting questions concerning the 
factual presentation.   
1.5.  The trade liberalization policy promoted by Chile in recent decades ha d allowed a considerab le 
increase both in exports and imports, enabling economic development and new job opportunities for 
Chile' s population. Moreover, this policy ha d promoted a wide network of trade agreements that ha d 
allowed the devel opment of international trade participation by Chile in an increasingly globalized 
world.  
1.6.  Indonesia was one of the largest economies in Southeast Asia and a  G20 member . The GDP of 
Indonesia ha d risen by 70% during the past two decades, with lower poverty r ates in both rural and 
urban areas. This prove d Indonesia 's economy 's enormous potential. In addition, Indonesia and 
Chile share d a wide range of interest s in the Asia -Pacific Economic Cooperation (APEC) Forum.  
1.7.  In the context of the evolution of the Partie s' trade partnership, the negotiation of the 
Agreement had  represent ed a new important milestone in their bilateral relationship, since Chile was 
the first country in South America to have enter ed into a bilateral trade agreement with Indonesia.  
1.8.  Regarding the characteristics of th e Agreement, she h ighlight ed that it complie d with the 
standards established in Article XXIV of the GATT, insofar as it had eliminated tariffs for a substantial 
part of bilateral trade.  
1.9.  At the entry into force of this Agreement, Indonesia granted to Chile the immediate elimination 
of tariffs for 5,962 tariff items. This represent ed approximately 55% of Indonesia 's tariff lines  and WT/REG403/M/1  
 
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  imports originat ing in  Chile in 2016. In addition , 3,346 tariff items would be fully removed, according 
to the schedule of this Agreement ( in 5, 7 or 10 years), representing 32 .1% of Indonesia 's tariff 
lines.  
1.10.   Under th e Agreement, Chile would progressively obtain duty free access for 86% of 
Indonesi a's tariff lines, and 93% of exports to Indonesia w ould be covered under  the tariff 
elimination schedule. Chile granted to Indonesia the immediate elimination of tariffs for 6,7 04 tariff 
items. This represent ed approximately 78.3% of Chile 's total tariff lines. In addition, tariffs on 
965 items would be fully removed according to the tariff elimination schedule ( in 4 and 6 years), 
representing 11.3% of Chil e's tariff lines. Under  the Agreement, Indonesia would progressively 
obtain duty free access to 89.6% of Chile 's tariff lines.  
1.11.   The representative of Indonesia  thanked the WTO Secretariat on the success of facilitating 
the transparency of the Agreement  through th e Factual Presentation  and expressed  his gra titude to 
WTO members  in their interest concerning th e Agreement .  
1.12.   The Agreement contained chapters  on trade in goods and  related disciplines, such as: rules 
of origin, trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, 
cooperation, among others. In addition, the Agreement contained a clause reflecting the intention 
of both countries to ini tiate, in the short term, a second phase of negotiation s on disciplines on trade 
in services and investments.  
1.13.   Since its entry into force, several Chilean goods ha d benefited from the immediate elimination 
of tariffs  on products such  as dairy products (but ter and cheese), almonds, hazelnuts, walnuts, 
chestnuts, fresh fruits (avocados, oranges, lemons, grapes, apples, pears, cherries, peaches, plums, 
blueberries and kiwis), iodine, wood, cellulose and copper (except cathodes), honey, grape and apple 
juices, among others goods.  Indonesia ha d enjoyed a preferential tariff for products such as 
footwear, motor vehicles, machinery, textiles, apparels, electronic components, detergent, paper 
products, frozen seafood, fertilizers, processed foods, perfume, and clinker, among others.  
1.14.   The Agreement contemplate d the possibility of goods being transported through a non -party, 
without losing their origin recognition. It permitted  the harmonization of customs procedures and 
facilitate d the process of issuing advance rulings, through the inclusion of a ri sk management system 
that classifie d shipments as high or low risk, liberalizing those goods with low risk. With this, Chile's 
exporters benefited from reductions in dispatch costs and timeframes.  
1.15.   Further, besides market access, th e Agreement promote d the establishment of economic 
cooperation activities between the Parties, in order to expand and broaden its benefits, as well as to 
create new opportunities and encourage mutual economic growth and development in areas such as 
trade development, environmental  and labo ur issues, intellectual property, participation and 
insertion of both Parties in global value chains, as well as other areas that the Parties may agree on.  
1.16.   Overall, since its entry into force in August 2019, the Agreement had had a positive evalu ation 
regarding its potential and future impact on bilateral trade , although trade flows ha d been highly 
affected by the current pandemic. Between January and September 2020, total bilateral trade had 
amounted to US D 180 million approximately. However, tot al trade had been  projected to increase 
by 33%, in the three years since implementation of th e Agreement.    
1.17.   In conclusion, it was important to underscore the commitment of Indonesia and Chile to take 
forward  their bilateral trade relation s embedded in the Agreement , and move towards its  
implementation in an efficient and beneficial way for both nations.   
1.18.   The representative of Japan  thanked Indonesia and Chile for the detailed replies to questions 
posed by Japan.  
1.19.   The European Union  congratulated the Parties on their free trade agreement and high level 
of liberali zation of tariffs, and thanked them  for the transparency provided and the WTO Secretariat 
for the comprehensive Factual Presentation.   
1.20.   The representative of  the United States  thanked the Parties and the Secretariat for the 
information provided and the Factual Presentation and for the comprehensive replies provided to WT/REG403/M/1  
 
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  questions. She noted also that the Parties had some non -notified free trade agreements . She  
encouraged them to notify the agreements that were in force as soon as possible.  
1.21.   The representative of Canada  thanked the Parties for their replies to the questions provided 
and the Secretariat for the Factual Presentation.  
1.22.   The Chairman  noted that t he consideration of the Goods Aspects of the Comprehensive 
Economic Partnership Agreement between Chile and Indonesia ha d allowed the Committee to clarify 
a number of questions and conclude d oral discussion of this RTA in accordance with parag raph 11 
of the Transparency Mechanism. Any delegations wish ing to ask follow up questions were invited to 
forward submissions in writing to the Secretariat by 25 November 2020 and the Parties were asked 
to submit replies in writing by no later than 9 Decem ber 2020. In accordance with paragraph 13 of 
the Transparency Mechanism all written submissions, as well as minutes of this meeting would be 
circulated promptly, in all WTO official languages, and made available on the WTO website.  
1.23.   The Committee took note  of the comments made.  
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