Jakarta (VNA) – Indonesia wants to secure a trade deal with the
European Union (EU) in hopes that it can compete with Vietnam, particularly in
the area of footwear export, according to Chief Economic Affairs Minister
Airlangga.
At the Investor Daily Roundtable Conference in Cirebon, Indonesia, on January
24, Airlangga said the EU – Vietnam Free Trade Agreement (EVFTA) seeks to
eliminate 99% of tariffs, paving the way for more Vietnamese footwear products
to break into the European market.
Meanwhile, an FTA between Indonesia and the EU is under negotiation, making
Indonesian goods face 20% import duties, Airlangga added.
Footwear is among Vietnam’s key exports to the EU. The Observatory of Economic
Complexity (OEC) database puts Germany and Belgium in top five Vietnamese
footwear export destinations in 2021.
The OEC said Indonesia’s footwear shipment was only a fraction of Vietnam, with
the export revenue of 5.8 billion USD as compared to 19.9 billion USD of its
ASEAN peer.
Indonesia has been negotiating a comprehensive economic partnership agreement
(CEPA) with the EU since 2016. Both sides have concluded the 16th round
of talks and will hold the next meeting in February./.
VNA
