Political Agreement on Free Trade Agreement Between EU and Indonesia
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European Union (EU) President Ursula von der Leyen and Indonesian President Prabowo Subianto made a major announcement on Sunday, announcing a political agreement on a free trade agreement. The move comes amid growing uncertainty over US policy on global trade.
Speaking to reporters in Brussels, EU President von der Leyen said, “We are living in challenging times, with increased economic uncertainty and political instability. In times like these, partners like us need to work even closer. Today, we are making great progress in our partnership.” She added, “I am pleased to say that we have reached a political agreement on an ambitious free trade agreement.”
The 27-nation EU and Southeast Asia’s largest economy, Indonesia, have been negotiating the deal since 2016 to boost trade and investment. The European Commission called Sunday’s agreement a major achievement and said it would be formally concluded in September.
Ursula von der Leyen said the agreement came at the right time, saying there was still much potential in the trade relationship between the two sides. She expressed confidence that the new agreement would open up new markets and bring new opportunities in key industries, trade, agriculture, the automotive industry and services.
The European Union is stepping up efforts to strengthen ties with key global partners after the US threatened to impose high tariffs. Von der Leyen said the major political agreement with Indonesia was a major success for the EU and would help it find new and open markets.
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