Indonesia to gain wider access to EU market for palm oil
In Ukraine, UkrAgroConsult reported that Indonesia expects to significantly expand access for its products, including crude palm oil, to the EU market once the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) enters into force. Negotiations on the agreement were concluded in September 2025, with implementation expected in 2027.
Once the agreement takes effect, zero tariffs will immediately apply to 90.4% of Indonesia’s tariff lines. Another 8.37% will benefit from gradual tariff reductions combined with tariff-rate quotas. The new trade terms are expected to improve access to the European market for a range of Indonesian products, including palm oil, coffee and other agricultural goods, according to the report.
Indonesia is the world’s largest producer and exporter of palm oil, so improved trade conditions with the EU could strengthen the position of its products in the European market. However, the terms cited do not indicate that palm oil itself will necessarily be among the products receiving immediate duty-free access once the agreement takes effect, the report added.
Category: Food & Agriculture
