After nearly ten years of negotiations, the European Union and Indonesia have officially concluded today in Bali the Comprehensive Economic Partnership Agreement (CEPA). This landmark trade deal is expected to generate approximately €300 million in annual duty savings for the European sporting goods industry.

EU Trade Commissioner Maros Šefčovič welcomed this historic breakthrough, stating that

“this agreement eliminates over 98% of tariffs, removing nearly all barriers to trade and opening new pathways for investment. Key sectors on both sides will benefit – from palm oil, textiles, and footwear in Indonesia to agri-food, automotive and chemical industries in the EU”.

Throughout this decade-long process, FESI has been a consistent and vocal advocate for the conclusion of what will be one of the most ambitious Free Trade Agreements ever signed between the European Union and a key manufacturing country. Our efforts have included numerous technical and high-level meetings, the production of position papers, political statements and technical feedback, a high-level delegation visit to Jakarta, and the creation of a cross-sectoral alliance of more than 20 trade associations representing both the EU and Indonesian economies. These actions have been instrumental in ensuring that the sporting goods industry’s priorities were placed at the centre of the negotiations.

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CEPA is not only important for tariff reductions. It also represents a broader strategic achievement for the European sporting goods industry. The agreement strengthens the EU’s trade ties with one of Asia’s fastest-growing economies, contributes to supply chain diversification, and enhances resilience in a rapidly evolving global trade environment.

With the negotiations now concluded, the process will enter a technical phase of legal scrubbing and official translation, before moving to ratification by the European Union and Indonesia. Given the length of this process, entry into force is highly unlikely before 2027 at the earliest. It is therefore essential that ratification proceeds swiftly so that the benefits of CEPA can be realised without delay.

Once the final text of the agreement is published in the coming days or weeks, FESI will provide a detailed analysis of its implications for the sporting goods industry, with particular attention to the tariff liberalisation schedule and rules of origin.

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Please find attached FESI’s press release on this milestone achievement and here is the Commission’s.