Geopolitics trumps deforestation as Brussels seals Indonesia trade deal

growing economies, comes quick on the heels of US President Donald Trump’s decision to hit both with tariffs. It’s therefore no surprise that the European Commission’s veteran dealmaker Maroš Šefčovič’s is moving to double down on relations with key Asian allies. Over recent years, the Commission has moved to build on its deals with Singapore and Vietnam by kicking off talks with Thailand and the Philippines, while trying to make progress on a mammoth pact with India. The hope with the Indonesia deal is that slashing tariffs by as much as 98% will multiply the €27.3 billion in bilateral trade between the two recorded in 2024. Experts say the deal with Jakarta is generous. “It is by far the most ambitious FTA (free trade agreement) that the Indonesians have agreed to,” said Hosuk Lee-Makiyama, director of the European Centre for International Political economy (ECIPE) and a former diplomat, adding that concessions go beyond the recent EU-Mercosur agreement. But fights over EU ...