China to exclude CPO from ASEAN-China FTA plan<\/p>\n
Zakki P. Hakim
\nThe Jakarta Post\/Jakarta<\/p>\n
China is expected to exclude crude palm oil (CPO) products from a
\nplanned ASEAN-China free trade agreement by maintaining a tariff
\nwall in a bid to protect its domestic vegetable oil industry from
\na massive inflow of cheaper CPO products from Malaysia and
\nIndonesia.<\/p>\n
Director for regional cooperation at Indonesia's Ministry of
\nTrade, Eliver Radjagoekgoek, said China had included CPO on its
\nsensitive and highly sensitive list of products to be protected
\nagainst the trade liberalization scheme.<\/p>\n
\"China wants to put a brake on CPO imports from Malaysia and
\nIndonesia. China has its own (vegetable oil) industry to take
\ncare of,\" Eliver said on Wednesday.<\/p>\n
In addition to CPO, China also included wood and paper
\nproducts on its sensitive and highly sensitive list.<\/p>\n
On its accession to the World Trade Organization, China
\ncommitted to apply the same import tariff on all wood and paper
\nproducts.<\/p>\n
If China applies a lower rate on wood and paper products from
\nASEAN countries, it must impose the same lower rate on products
\ncoming from countries outside the region. China also imports wood
\nand paper products from Brazil and Canada.<\/p>\n
Eliver said Indonesia had no objections to China including the
\nproducts on the exclusion list, as long as all countries received
\nequal treatment when exporting the commodities to China.<\/p>\n
However, it was not immediately clear which specific CPO
\nproducts and wood and paper products were excluded from the
\nliberalization scheme.<\/p>\n
CPO and wood and paper products are among Indonesia's top
\nexports to China. Total trade between the two countries reached
\nUS$10.2 billion last year, producing a surplus over $1 billion
\nfor Indonesia.<\/p>\n
Overall, China has 259 categories of sensitive and highly
\nsensitive goods, said the ministry's deputy director for inter
\nand intra-regional cooperation, Retno Kusumo Astuti.<\/p>\n
Indonesia has 398 categories of sensitive and highly sensitive
\ngoods, including rice, sugar, soybeans, corn, automotive
\ncomponents, textiles, garments and ceramic tableware, Retno said.<\/p>\n
The inclusion of certain goods on the sensitive and highly
\nsensitive list was based on the request of local industry
\nplayers, Retno said.<\/p>\n
The ASEAN-China free trade agreement is expected to be
\nformalized during a summit in Vientianne, Laos, later in
\nNovember.<\/p>\n
Under the agreement, most goods traded between ASEAN and China
\nwould have their tariffs slashed starting Jan. 1, 2005,
\neventually reaching zero import tariffs by 2010.<\/p>\n
Meanwhile, tariffs on sensitive goods will be slashed starting
\nin 2012, before being fully liberalized in 2017, with the
\nexception of highly sensitive goods which would retain a certain
\nlevel of import duties.<\/p>",
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"sponsor": "Okusi Associates",
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