The delegates clearly outlined the negative consequences that they feared an FTA with EFTA countries would have at various lobbying meetings. Alongside criticism of the usual EFTA demands around liberalising financial sectors and strengthening intellectual property rights, one Indonesian NGO representative stressed the importance of the Indonesian government including the Indonesian people in the process and of analysing exactly what kind of trade policy would serve the pressing needs and interests of the Indonesian population:
Bilateral free trade agreements contain hidden mechanisms to safeguard the privileges and wealth of multinational companies and the interests of powerful governments.
The controversial removal of tariffs on palm oil
After 15 rounds of negotiations an agreement has yet to be concluded. One reason for this is Indonesia’s demand for palm oil to be exempted from tariffs (see FTA with Malaysia).
Civil society organisations in both countries have been vigorously fighting this. Switzerland cannot give preferential treatment to a product if producing it causes human rights violations and environmental damage.
In order to cultivate this versatile oil, indigenous people are robbed of their land and thus their means of survival. Huge swathes of rainforest are cleared, and those displaced are left with no option but to sign up as day labourers at the plantations, where they have to work under inhumane conditions for a meagre wage.
Along with the Indonesian human rights and environmental organisation WALHI, a broad coalition of Swiss NGOs and farmers’ organisations called for palm oil to be excluded from the free trade agreement in an open letter (in german) to Federal Councillor Schneider-Ammann and the Indonesian government.