On November 1, a new agreement came into force between the states of the European Free Trade Association (EFTA) and Indonesia. It aims to simplify trade and contribute to environmental protection.

The Comprehensive Economic Partnership Agreement (CEPA) between the EFTA states (Switzerland, Iceland, Liechtenstein and Norway) and Indonesia came into force on November 1. It aims to boost trade links between the partners. According to a press release from EFTA, it covers all areas that are usually included in EFTA’s comprehensive free trade agreement.

The agreement gives the EFTA states access to export products such as fish and marine, agricultural, food industry, industrial and technical products as well as, machines, clocks, chemicals and medicinal products. However, it also plans to simplify trade with services. It additionally offers improved conditions for cross-border investments.

The section on trade also places a focus on sustainable development. It includes obligations for the parties of the agreement in the areas of environmental protection, basic rights, and the sustainable cultivation of forest resources and plant oils.

According to information from EFTA, trade in goods between the EFTA states and Indonesia amounted to more than 1.1 billion euros in 2020. The EFTA states exported goods with a value of 628 million euros. This figure was 518 million euros for imports.

The agreement was signed in December 2018, approved by the Swiss councils in December 2019, and approved by the Swiss electorate in the vote on March 7, 2021. According to information from the federal government, EFTA is the first partner in Europe to have concluded an agreement of this type with Indonesia.