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Controversial Indonesia FTA On Course For Referendum Approval

SWITZERLAND

A free trade deal between Switzerland and Indonesia looks likely to be approved in a March 7 referendum according to the latest opinion polls.

  • gfs.bern Poll: Do you support an FTA between Switzerland and Indonesia?: Yes: 27% (+4), Mostly Yes: 25% (-3), Mostly No: 17% (-2), No: 24% (+7). Total yes: 52%, Total No: 41%. +/_ vs 11-24 Jan. Fieldwork: 10-18 Feb. 12,166 respondents.
  • Indonesia's exports to Switzerland totaled USD960mn in 2018, while trade in other direction amounted to USD643mn according to UN COMTRADE data.
  • The referendum on the trade deal is only the second Switzerland has held on an FTA in the past 50 years. There is significant controversy around the deal due to the opposition of many voters to Indonesia's production of palm oil, which is destructive to natural wildlife and creates barren monocultures in previously dense jungle.
  • The FTA contains provisions demanding that palm oil exported to Switzerland is sustainable, and a reduction in the tariff from 40% to 20% only applies to the first 12.5k tonnes imported, but this has not assuaged the demands of opponents to the FTA.

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