News / Business

EU looking into free trade with Indonesia

Monday, 18 July 2016 6:03 PM [ Last Update: Monday, 18 July 2016 6:03 PM ]

The European Union is planning to start talks with Indonesia to establish a free trade regime with the country.

The European Union says it has reached a deal with Indonesia to start talks over establishing a free trade regime with the country.

"The EU and Indonesia represent a huge market of 750 million consumers. These negotiations are key to unleash synergies between our economies," said EU Trade Commissioner Cecilia Malmstroem and Indonesian Trade Minister Tom Lembong in a joint statement.

The bilateral deals "serve as building blocks towards a future EU-ASEAN agreement, which remains the EU's ultimate objective," the statement said, as reported by AFP.

It further emphasized that the talks with Indonesia would begin by the end of the year.

The EU is already in free trade talks with Philippines, Malaysia and Thailand. It has already concluded deals with Singapore in 2014 and Vietnam in 2015.

This comes at a time that doubts are building up in Brussels over the benefits of globalization.

Also, criticisms are at the same time growing among EU states that similar approaches toward other countries like Canada, the US and Britain have already failed.

A deal for a free trade regime between the EU and Canada faces a risky ratification process among the 28 member states, while a proposed accord with the US seems at risk of being abandoned, AFP added.

The EU also faces possible future trade talks with Britain when it eventually leaves the bloc following last month's referendum.

The EU is Indonesia's fourth largest trading partner with agricultural products a key export. Indonesia is the EU's fifth largest trading partner in South-East Asia but only 30th overall.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk