FTA with Australia, NZ to cover textiles, forestry<\/p>\n
Rendi A. Witular, The Jakarta Post\/Wellington<\/p>\n
Indonesia will propose special facilities for some of its leading
\nindustries in upcoming preliminary negotiations for a free trade
\nagreement (FTA) with Australia and New Zealand, a minister has
\nsaid.<\/p>\n
Minister of Trade Mari Elka Pangestu said on Thursday that
\nIndonesia's FTA proposal for Australia would most likely cover
\nproducts in the sectors of textiles and garments, automotive,
\nfootwear, and electronics, as well as services -- in particular,
\nskilled nurses.<\/p>\n
\"Currently, Indonesian products face a number of tariff and
\nnon-tariff constraints to get into Australia. The FTA is expected
\nto remove them, especially for products and services that
\nIndonesia are good at,\" said Mari during her visit with President
\nSusilo Bambang Yudhoyono to Australia and New Zealand.<\/p>\n
Mari reiterated that at present, Australia imposed high
\ntariffs for some of Indonesia's most important products, while
\nnon-tariff barriers mostly revolved around problems of quality
\nstandards and capacity building.<\/p>\n
It is due to these problems that the trade relationship
\nbetween the two countries has remained relatively insignificant,
\nwith Indonesia ranked as Australia's 16th largest trading partner
\nwith bilateral trade worth some A$8 billion (US$6.5 billion) last
\nyear.<\/p>\n
Meanwhile, in the services sector, Indonesia will be expecting
\nAustralia to help local nurses by providing training and
\nprofessional certification in Indonesia to enable them to work in
\nAustralia.<\/p>\n
\"We are hoping that Australia will open its door wider for
\nIndonesian skilled laborers, since we have allowed them to invest
\nin and operate hospitals in Indonesia.<\/p>\n
\"I believe Australia now lacks nurses and skilled workers in
\nother service sectors,\" said Mari.<\/p>\n
Indonesia and Australia are now assessing the advantages and
\nconstraints in setting up the FTA between the two nations, with
\nnegotiations over essential facilities for the actual agreement
\nto be conducted later on.<\/p>\n
Indonesia, Southeast Asia's largest economy, has lagged behind
\nSingapore, Malaysia and Thailand in initiating FTA talks with
\nAustralia, as well as with New Zealand, due in part to the
\nunclear, uncoordinated trade and industry policies of previous
\ngovernments.<\/p>\n
Elsewhere, regarding a trade agreement with New Zealand, Mari
\nsaid that it was still at an early stage. Two-way trade between
\nthe two countries last year was only US$330 million, with New
\nZealand's exports to Indonesia being valued at $180 million, and
\nIndonesia's at $150 million.<\/p>\n
Trade is mostly in forestry-based products such as pulp, paper
\nand furniture.<\/p>\n
\"The FTA talks with New Zealand are still very preliminary. We
\nformed a trade and investment commission with them in 2001,
\nhowever, no follow-up has been done since. Now we want to
\nreignite the commission to start talking about the FTA,\" said
\nMari, adding that the commission was scheduled to meet in
\nNovember.<\/p>\n
Mari said Indonesia would propose cooperation in furniture and
\nother wood-based products to be included in the trade agreement.<\/p>\n
\"Forestry based industries in New Zealand are very advanced,
\nand we need to cooperate with them in order to boost our trade
\nactivities as well as improving our sustainable forest
\nmanagement,\" said Mari.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fta-with-australia-nz-to-cover-textiles-forestry-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}