Deal between Chile and Indonesia opens avenues for more intercontinental trade
A free trade agreement between Indonesia and Chile looks set to open further opportunities for Chilean exporters into Asia, while also helping realize Indonesia’s ambitions for wider trade access globally.
The Chile-Indonesia Comprehensive Economic Partnership Agreement (CEPA) was negotiated on the sidelines of a recent World Trade Organization ministers meeting in Argentina. It was piloted by Indonesian Trade Minister Enggartiasto Lukita and gives Indonesia a bridge to more Latin American markets through Chile’s free trade agreements on the continent.
The deal also helps Chile with its own access to Asian markets. Indonesia’s position as a member of the Association of Southeast Asian States (ASEAN) bloc, which has its own free trade agreement with China, gives Chile more options as it seeks to expand its seafood exports to Southeast Asia.
Indonesia is now set to start negotiations on a similar deal with Peru later in January. Its stated goal is to open up more favorable market access for its exports of seafood and other products in order to increase its competitiveness.