Indonesia and Brazil consider preferential trade agreement

Indonesia and Brazil are exploring a preferential trade agreement (PTA) to bolster bilateral economic ties and expand market access. Indonesian Trade Minister Budi Santoso proposed the PTA during discussions with Brazil’s Minister of Development, Industry, Trade and Services, Márcio Fernando Elias Rosa, in Jaipur, India.

The PTA is viewed as a pragmatic alternative to the Indonesia-Mercosur Comprehensive Economic Partnership Agreement (CEPA), which has seen limited progress due to differing views among Mercosur members (Brazil, Argentina, Paraguay, Uruguay, and Bolivia). The goal is to use Brazil as a gateway for Indonesian goods into Latin America, while Indonesia serves as an entry point for Brazilian exports into Asian markets.

In a separate development at a BRICS meeting in Jaipur, Minister Santoso emphasized Indonesia's support for fairer global trade rules. He advocated for a strong, inclusive, and transparent multilateral trading system centered on the World Trade Organization (WTO) and supported BRICS initiatives to enhance financing for micro, small, and medium enterprises (MSMEs) and digital transformation.