EU + Indonesia finalize nine-year trade agreement talks

EU + Indonesia finalize freetrade pact: The EU and Indonesia finalized a freetrade agreement that will remove duties on most bilaterally traded goods, according to a statement. The agreement — finalized after nine years of negotiations — is expected to double trade between the country and the bloc within the first five years of its taking effect on 1 January 2027, Reuters reports.

The details: Indonesia will remove duties on 98.5% of EU goods, whereas Indonesian goods will benefit from zero tariffs in 90% of the EU’s market. EU cars will have zero duties within 5 years, down from 50%, while levies on machinery and appliances will be gradually reduced from 30% to zero, Bloomberg reports.

Trade in numbers: Trade between the EU and Indonesia reached EUR 27.3 bn in 2024 — comprising EUR 9.7 bn in EU goods and EUR 17.5 bn in Indonesian products.

US pressures China on Boeing order as trade talks linger: US officials met with senior Chinese leaders in Beijing to propose an arrangement where China would commit to purchasing more Boeing jets, Reuters reports, citing comments made by Washington’s Ambassador to China David Purdue. This comes almost one month after reports linked Boeing and China to talks over a 500-jet order.

REMEMBER-Aircraft orders are emerging as a bargaining chip — or perhaps a showing of goodwill — in trade talks with the US, with several global and regional players moving on big Boeing orders as part of national strategies to appease the US. The Boeing agreement with China is “very important” to US President Donald Trump, Purdue was quoted as saying.

ICYMI- Turkey was the latest nation to be floating a mega Boeing order (250 jets) amid trade talks and ahead of the high-level meeting between Turkish President Recep Tayyip Erdoğan and US President Donald Trump.