The European Commission on July 16, 2020, published the final Sustainability Impact Assessment (SIA) for the EU-Indonesia trade and investment agreement. The Commission also indicated how it proposes to take on board the recommendations made by the independent consultants as regards potential economic, social, environmental and human rights impacts. As part of its transparency commitment, the Commission also publishes a report summarising progress made during the latest negotiation round.
The SIA report, prepared by a consortium of independent consultancy companies, led by Development Solutions, is part of an engagement process with civil society that aims to contribute to a sound, evidence-based and transparent societal debate in the process of negotiations for a future trade and investment agreement.
The SIA projects that an agreement will be beneficial for both sides as regards all the aspects under study.
It concludes, for example, that the agreement will be carbon-efficient and that the dissemination of climate-friendly products and technologies can outweigh potential negative impacts from increased production in resource- or emission-intensive sectors.
In line with these findings, and in the framework of the negotiations, the Commission pursues the opening of the Indonesian market to climate-friendly goods and investment, and aims to lock in commitments fostering multilateral environmental governance, including the implementation of the Paris Agreement and the sustainable management of natural resources.
The study also expects the agreement to support further integration of small and medium-sized businesses on both sides into global value chains. Smaller businesses should in particular benefit from reduction of regulatory issues, which represent higher costs for them than for larger companies.
The negotiations with Indonesia have been in progress since July 2016. The latest, virtual, round was held from June15 to 26, 2020, showing commitment to making progress despite the difficulties caused by the health crisis.
The round served to consolidate the negotiating texts in most areas or to prepare the ground for more extensive discussions at the next full round. The negotiators succeeded also in bringing close to conclusion the chapter on customs and trade facilitation. The date for the next round of negotiations is still to be agreed.