Europe Notches an Early Win in Indonesian Free Trade Deal
Europe is accelerating efforts to expand its global trade network amid evolving geopolitical and economic challenges, including shifting U.S. tariff policies and China’s industrial overcapacity. As German auto exports to China slow, the EU is taking bold steps to diversify its markets and strengthen multilateral trade cooperation. Brussels has revived agreements with Mexico and the Mercosur bloc for ratification and, following years of negotiation, successfully concluded a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia to remove most bilateral tariffs. While discussions continue over issues such as nickel exports, palm oil, and deforestation rules, the CEPA represents a major milestone in the EU’s renewed engagement with Southeast Asia, where talks with Thailand, the Philippines, and Malaysia are also advancing. Once ratified, these pacts could grant the EU access to the vast ASEAN economy worth US$4.13 trillion, deepening trade ties and reinforcing Europe’s role as a dynamic, forward-looking, and globally competitive economic partner.