Apparel will receive zero tariffs during the entry into force (EIF) phase. Footwear, apparel, textiles, processed foods, palm oil and its derivatives will all benefit from EIF, the ministry's director general of international trade negotiations Djatmiko Bris Witjaksono said.
The IEU-CEPA covers market access for goods, with both parties committing to eliminating tariffs on 98 per cent of the total tariff items and 99 per cent of the total import value, he was cited as saying by a domestic news agency.
He explained that several products like footwear, textiles and textile products have optimal market access due to comparative advantage.
The agreement comprises 25 chapters covering liberalisation, trade facilitation, cooperation and emerging issues.
Under the IEU-CEPA, around 80 percent of tariff lines will be eliminated, offering broader trade and investment opportunities for both parties.
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