A proposal for a Council decision on the conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between the EU and Indonesia, transmitted by the European Commission to the Council on 29 June 2026, provides for the elimination of import duties on all iron and steel products listed in Chapter 72 of the Harmonized System. The tariff elimination covers a wide range of products including pig iron, ferro-alloys, ferrous waste and scrap, semi-finished products, flat-rolled products, bars, rods, wire, angles, shapes, sections, and stainless steel products. For most products, the base rate of duty (ranging from 0% to 7%) will be eliminated immediately upon entry into force of the agreement, as indicated by the staging category "A". However, exceptions apply to certain ferro-alloys: ferro-silicon containing more than 55% silicon (base rate 5.7%) is assigned staging category "B7", and other ferro-silicon and ferro-chromium products (base rate 5.7% or 7%) are assigned staging category "D", indicating a longer phase-out period.
The proposal marks a significant step in EU-Indonesia trade relations, as the CEPA aims to deepen economic ties between the two partners. The immediate elimination of tariffs on most iron and steel products is expected to benefit EU importers of Indonesian steel, potentially lowering costs for downstream industries such as automotive, construction, and manufacturing. However, EU steel producers may face increased competition from Indonesian imports, particularly for products where tariffs are eliminated immediately. The longer phase-out for certain ferro-alloys provides a transitional period for EU producers of these specialised materials. The Council will now consider the proposal before the agreement can be formally concluded.