A proposal for a Council decision on the signing of the Comprehensive Economic Partnership Agreement between the European Union and Indonesia, published on 29 June 2026, includes tariff elimination schedules for iron and steel products (Chapter 72). The document sets out base rates and staging categories for each product line, with most tariffs eliminated immediately upon entry into force.
The agreement covers a wide range of iron and steel products. Under staging category A, immediate duty-free access applies to pig iron (base rate 1.7%), ferro-nickel (base rate 0%), flat-rolled products (base rate 0%), bars and rods (base rate 0%), wire (base rate 0%), and stainless steel products (base rate 0%). For a few ferro-alloys, tariffs are phased out over longer periods: ferro-silicon with over 55% silicon (base rate 5.7%) under category B7, with linear reduction over 7 years; and ferro-silicon with 4-10% magnesium (base rate 5.7%) and ferro-chromium with up to 0.05% carbon (base rate 7%) under category D, with linear reduction over 10 years. No exclusions are stated in this text.
The tariff elimination schedule impacts several stakeholders. EU steel producers face increased competition from Indonesian imports, particularly for products with immediate tariff elimination, which could pressure domestic prices and market share. EU downstream manufacturers using steel inputs benefit from lower-cost imports, potentially reducing production costs. Indonesian steel exporters gain preferential access to the EU market, boosting their competitiveness. EU consumers may see lower prices for steel-containing goods, though the effect is likely moderate given the narrow scope of products. The agreement represents a trade-off between market liberalization and protection of domestic industry, with most tariffs eliminated immediately and only a few sensitive ferro-alloys given longer transition periods.