Indonesia’s Trade Minister Budi Santoso said the government is looking to accelerate a bilateral trade agreement with Mexico in response to Mexico’s plan to implement import tariffs of up to 50% on goods from countries without a free trade agreement. Indonesia views a Comprehensive Economic Partnership Agreement (CEPA) as an effective tool to help Indonesian products avoid high import duties if they enter the Mexican market. Discussions on a trade deal have been ongoing, but the threat of steep tariffs has prompted Jakarta to speed up negotiations and schedule further meetings with Mexican counterparts to finalize the agreement. The CEPA Indonesia proposal would be similar to the trade pact recently signed with Peru, providing a framework that could significantly reduce or eliminate tariffs for Indonesian exports.
The proposed Mexican tariff policy—approved by its parliament and set to take effect in 2026—would introduce duties of up to 50% on more than 1,400 product lines for countries without free trade agreements, including Indonesia, Thailand, India, and others. The high tariffs are part of Mexico’s efforts to protect and support domestic manufacturing and are expected to target goods such as metals, vehicles, textiles, and household appliances. Indonesian officials argue that a bilateral trade agreement could shield exporters from these costly duties, although some government representatives have also noted that Mexico’s tariff plan may have minimal direct impact on Indonesia’s economy due to limited trade dependency on Mexico.
