Exports expected to increase 16% yearly after GATT<\/p>\n
JAKARTA (JP): The annual growth rate of Indonesia's exports
\nare projected to increase by 16 percent after the implementation
\nof the new General Agreement on Tariffs and Trade (GATT) next
\nyear, Minister of Trade Satrio B. Joedono says.<\/p>\n
Speaking at a hearing with Commission VII of the House of
\nRepresentatives yesterday, Joedono said the country's current
\nannual export growth stands at 13.8 percent, much higher than the
\nworld's average growth of 5.6 percent.<\/p>\n
He noted that the growth increase will result from the low
\nimport tariffs to be implemented by developed countries in
\naccordance with GATT's principles which stipulate import tariffs
\nbe cut by 33.3 percent.<\/p>\n
He illustrated that Japan's current average import tariff of
\n6.3 percent will be lowered to 3.9 percent, while its tariff for
\nindustrial products will be cut to 3.6 percent from the current
\n6.9 percent.<\/p>\n
The United States will also cut its import tariff to an
\naverage of 6.5 percent from the current of 8.8 percent, Joedono
\nsaid.<\/p>\n
Japan and the United States are the major destinations of
\nIndonesia's exports.<\/p>\n
Joedono added that Indonesia's textile and textile related
\nproducts, which account for 14 percent of the country's total
\nexports, will be able to enter the United States more freely
\nafter its quota system is abolished as mandated by GATT.<\/p>\n
According to GATT, the Multi-Fiber Arrangement which allows
\ntextile importers to impose quotas through bilateral
\nnegotiations, will be gradually abolished over 10 years.<\/p>\n
\"Exports of textiles and garments will enjoy the most rapid
\ngrowth rate after GATT is implemented. Exports of textiles will
\ngrow by 34 percent annually and garments by 60 percent,\" the
\nminister said, referring to the results of a study conducted by
\nthe GATT secretariat.<\/p>\n
Exports<\/p>\n
Joedono yesterday also announced that Indonesia's exports
\nduring the April-August period of this year increased by 17
\npercent to $13 billion over the same period of last year.<\/p>\n
\"If our exports can be maintained at $2.6 billion per month,
\nwe will reach $31.2 billion this fiscal year, 16 percent higher
\nthan last year,\" Joedono said.<\/p>\n
Commenting on Indonesia's readiness to enter the GATT era,
\nJoedono said Indonesia has long been liberalizing trade by
\nlowering import tariffs and reducing non-tariff barriers since
\n1983.<\/p>\n
\"The motivation behind the cutting of import tariffs is
\nactually to nourish non-oil exports,\" Joedono told the
\ncommission, which deals with trade, finance and cooperatives.<\/p>\n
The minister said Indonesia's current import tariffs average
\nat 11 percent, far lower than the 40 percent required by GATT.<\/p>\n
He explained that only 60 items -- out of 8,877 kinds of
\ntraded goods -- are subjected to import duties of over 40
\npercent, and one fourth of the country's total imports are
\nalready duty free.<\/p>\n
When asked about the benefits Indonesia can reap from the
\nliberalization scheme of the Asia Pacific Economic Cooperation
\n(APEC) forum, Joedono explained that Indonesia will be able to
\ndirect more of its exports to other APEC members. Presently 70
\npercent of its total exports go to APEC countries.<\/p>\n
\"Indonesia will not only become the market of products from
\ndeveloped members but will also inundate them with its products,\"
\nJoedono said, adding that trade between Indonesia and APEC's
\ndeveloped members is more complementary.<\/p>\n
In their second informal summit in Bogor, south of here, last
\nweek, APEC leaders agreed on the liberalization of trade and
\ninvestment in the region by 2010 for developed members and 2020
\nfor developing members. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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