The Chile–Indonesia Comprehensive Economic Partnership Agreement is a bilateral free trade agreement signed between Chile and Indonesia in December 2017 and in effect since August 2019.

Terms

The agreement covered a gradual elimination of tariffs on 9,308 items exported by Chile to Indonesia (including copper,

olive oil Olive oil is a liquid fat obtained from olives (the fruit of ''Olea europaea''; family Oleaceae), a traditional tree crop of the Mediterranean Basin, produced by pressing whole olives and extracting the oil. It is commonly used in cooking: f ...

and dairy products) and 7,669 items being exported by Indonesia to Chile (including

palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced from ...

, automotive products and footwear). Out of the 7,669 Indonesian products, 6,704 immediately had tariffs eliminated once the agreement entered into force, while the rest were to have tariffs eliminated within 6 years of the implementation.

History

Chilean and Indonesian governments first agreed to form a joint study group for a potential trade agreement in November 2008, receiving the final report by November 2009. The first negotiations did not begin until five years later in May 2014 in Santiago, and after three years of pause the negotiations resumed with another round in

Jakarta Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital and largest city of Indonesia. Lying on the northwest coast of Java, the world's most populous island, Jakarta ...

during March 2017. Three further rounds were held throughout 2017, and on 14 December 2017 the formal agreement was signed in Santiago between Chilean Foreign Minister

Heraldo Muñoz Heraldo Muñoz Valenzuela (born July 22, 1948) is a Chilean political scientist, academic, diplomat and politician; the former Minister of Foreign Affairs of Chile under President Michelle Bachelet; former Assistant Secretary General, Assistant A ...

and Indonesian Trade Minister

Enggartiasto Lukita Enggartiasto Lukita (born 12 October 1951 in Cirebon, Indonesia) is an Indonesian politician and businessman. He served as the Minister of Trade from 27 July 2016 until 23 October 2019. He was previously renown as the Chairman of Indonesian Real E ...

. The Indonesian

People's Representative Council The People's Representative Council of the Republic of Indonesia ( id, Dewan Perwakilan Rakyat Republik Indonesia, DPR-RI), also known as the House of Representatives, is one of two elected chambers of the People's Consultative Assembly (MPR), ...

and the Senate of Chile ratified the agreement on 6 June 2018 and 28 November 2018, respectively. The agreement entered into force on 10 August 2019. Chile was the first country in Latin America to have a bilateral trade agreement with Indonesia. In addition to the free trade agreement, both countries had agreed to enter negotiations regarding

trade in services Trade in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer. Trade in services that takes place between a producer and consumer that are, in legal terms, based in different countrie ...

, a process expected to begin in the last quarter of 2020.

References

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External links

Full text of agreement (in English)
Indonesia Chile Treaties concluded in 2018 Chile–Indonesia relations