Free trade agreement signed with Indonesia

The EFTA states (Liechtenstein, Switzerland, Norway and Iceland) and Indonesia signed a free trade agreement in Jakarta on 16 December. This means that 98 per cent of Swiss exports to Indonesia will be exempt from custom duties over the coming years, according to a press release from the Federal Council. In addition, technical barriers to trade will be removed, market access for Swiss service providers will be made easier and bilateral economic relations in general will be improved.

Federal Councillor Johann Schneider-Ammann signed the agreement on behalf of the Swiss government. Also present at the signing were Heinz Karrer, president of the economic umbrella association economiesuisse, and Matthias Leuenberger, president of the chemical and pharmaceutical industry association scienceindustries.

According to an EFTA press release, Schneider-Ammann described the signing of the agreement as a “real landmark” in the relations between the EFTA states and Indonesia. He also praised EFTA for being the first partner in Europe to establish free-trade relations with Indonesia.

The Swiss parliament now has to approve the agreement so that Switzerland can ratify it by 2020 at the latest. With a trade volume of 830 million Swiss francs per year, Indonesia is Switzerland’s main economic partner in South East Asia.