Toward an ASEAN-EU FTA: Examining the Trade and Sustainable Development Chapter in the Prospective Indonesia-EU CEPA

Abstract

The successful outcome of bilateral free trade agreement (FTA) negotiations with individual ASEAN Members can be an important precursor toward the intra-regional FTA between ASEAN and the EU. The EU’s bilateral approach with Singapore and Vietnam appears to be fruitful thus far. Meanwhile the Comprehensive Economic Partnership Agreement (CEPA) negotiation with Indonesia is still in progress. Indonesia’s most important export commodity to the EU, palm oil, epitomises a potential challenge to the CEPA in particular in the area of trade and sustainable development (TSD). This article seeks to explore sustainability-related provisions potentially agreed upon in the Indonesia-EU CEPA which together with EU-Vietnam and EUSingapore FTAs will be a sound indicator for a future ASEAN-EU FTA, and how to deal with the issue of palm oil in the CEPA. ASEAN, EU, environment, FTA, Indonesia, labour, palm oil, sustainable development