The EFTA states (Liechtenstein, Switzerland, Norway and Iceland) and Indonesia signed a free trade agreement in Jakarta on 16 December. This means that almost all EFTA exports to Indonesia will be exempt from custom duties over the coming years. In addition, technical barriers to trade will be removed, market access for EFTA service providers will be made easier and bilateral economic relations in general will be improved.
Industry stakeholders in Liechtenstein will receive a “competitive advantage over those from countries with whom Indonesia has not yet concluded a free trade agreement, such as the EU or the US”, according to a statement from the Liechtenstein government.
Minister of Foreign Affairs Aurelia Frick signed the agreement on behalf of the Liechtenstein government. “Extending the EFTA free trade network to Indonesia provides Liechtenstein businesses with improved access to this important market with great potential,” said Frick, adding that signing the agreement is a strong commitment to free trade, which is of great importance to Liechtenstein in a time of growing protectionism.
According to EFTA, merchandise trade between the EFTA states and Indonesia amounted to $2.3 billion in 2017. The EFTA states exported goods worth $597 million and imported goods worth 1.7 billion in 2017.