The Council of the European Union has published an annex to the proposal for a Council decision on the conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia, dated 29 June 2026. The annex details tariff elimination schedules for hundreds of product lines, including ceramic tableware, glassware, glass fibres, precious stones and metals, iron and steel products, and imitation jewellery. Base rates range from 0% to 30%, with staging categories indicating immediate elimination (A), elimination over five years (B5), other treatment (D), or exclusion from liberalisation (X).
The document is part of the formal ratification process for the CEPA, which was negotiated over several years. The annex specifies that most glass products, precious stones, and many iron and steel items fall under category A, meaning tariffs will be eliminated immediately upon entry into force. Certain ceramic items and coated steel products are assigned to category B5, with tariffs phased out over five years. Ceramic tableware and some tinned steel products are in category D, subject to other treatment, while a few steel products are excluded entirely (category X).
Policy orientations and trade-offs The schedule reflects a compromise between liberalising trade and protecting sensitive domestic industries. Immediate elimination (A) covers products where EU exporters are competitive and Indonesian consumers benefit from lower prices, such as glass and precious stones. The five-year phase-out (B5) gives Indonesian producers time to adjust for items like ceramic tableware and coated steel. Category D allows for alternative arrangements, possibly including tariff-rate quotas or safeguard measures, while category X shields specific steel products from competition, likely to protect local manufacturing.
Impact on stakeholders EU exporters of glass, precious stones, and iron and steel will gain immediate tariff-free access, reducing costs and boosting competitiveness. Indonesian consumers and downstream industries will benefit from cheaper imports of these products. Indonesian ceramic and steel producers face increased competition, particularly for items in categories A and B5, though the phase-out period and exclusions provide some protection. EU producers of ceramic tableware and tinned steel face uncertainty due to category D treatment, which may involve non-tariff barriers or delayed liberalisation.
Institutional follow-up The proposal now requires adoption by the Council, after which the European Parliament must give its consent. Once ratified, the CEPA will enter into force, and the tariff schedules will be implemented by EU and Indonesian customs authorities.