The trade deal signed between the EU and Indonesia last week will reduce to zero the tariffs on Irish dairy and meat exports to the Asian nation of more than 280 million people. Currently meat and dairy exports from the EU are subject to between 5% and 20% duties.

The deal, which is called a Comprehensive Economic Partnership Agreement (CEPA) rather than a free trade agreement, has been in negotiation since July 2016. The finalising of the agreement comes as the EU looks to diversify its trading links due to US President Donald Trump’s aggressive trade policies.

Ireland’s food and drink exports to the country have been dominated by dairy which accounted for almost the entirety of the €20m of exports last year. Indonesia previously was a good customer for Irish infant food and fat-filled milk powder, but the exports of both of those was significantly reduced in 2024.

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Exports of infant food dropped from €2.3m in 2022 to zero in 2024 and fell from €21.6m for fat-filled milk powder in 2023 to €5m in 2024.

In a statement on the deal, the EU Commission said that agri-food exports from the EU to Indonesia totalled €1bn last year, with total exports of goods to the country amounting to €5.7bn.

Indonesia will have tariff-free access to EU markets for around 80% of its exports, including palm oil, textiles and footwear.

The CEPA is the third trade deal between the EU and Southeast Asian countries after those with Singapore and Vietnam. The deal must be ratified by EU member states, the European Parliament and Indonesia.