RI anxious ahead ASEAN-S. Korea talks<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Local industry players warned the government to make sure that
\nthe implementation of the free trade agreement between the
\nAssociation of Southeast Asian Nations (ASEAN) and South Korea
\nwas not in conflict with national interests.<\/p>\n
The Indonesian Olefin and Plastic Industry Association
\n(Inaplas) and Indonesian Textile Association (API) reminded the
\ngovernment on Thursday to be careful with regard to which
\nproducts it offered to be liberalized and which would remain
\nprotected in forming the FTA.<\/p>\n
\"Indonesia's FTA negotiation team should not be too aggressive
\nand hasty in slashing import duties. The team should first
\nconsult industry players and assess the facts in the field,\" said
\nInaplas chairman Didi Suwondo as quoted by Antara.<\/p>\n
API representative Rema Gita Wasisa said Indonesia should not
\nslash its import tariff too much, as it would make the country
\nlose its bargaining power in negotiations.<\/p>\n
According to Rema, Indonesia exported yarn made of cotton,
\npolyester and rayon to South Korea, and imported fabrics that
\ncontained nylon and acrylic fiber.<\/p>\n
\"Therefore, in the coming FTA negotiation with South Korea,
\nIndonesia should propose to cut the tariff on textile products
\ncontaining acrylic and nylon, which are not produced in the
\ncountry as the industry needs them,\" he said.<\/p>\n
Both associations were speaking on the sidelines of
\nIndonesia's Preparation in facing ASEAN-Republic of Korea Free
\nTrade Area symposium, held by the Ministry of Foreign Affairs.<\/p>\n
ASEAN and South Korea will meet next week in Seoul to discuss
\na draft of the preferential trade agreement.<\/p>\n
Leaders from both sides agreed in the ASEAN Summit in Laos
\nlast November to remove import tariffs from at least 80 percent
\nof the total groups of products traded by the grouping and South
\nKorea by 2009.<\/p>\n
South Korea is ASEAN's fifth largest trading partner, with
\nexports from ASEAN reaching US$17.1 billion in 2003, or about 4
\npercent of ASEAN's total exports.<\/p>\n
Meanwhile, ASEAN imports from South Korea stood at $15.1
\nbillion in 2003.<\/p>\n
Investment-wise, ASEAN is South Korea's third largest
\ndestination region with a total investment of $11 billion in
\n2003.<\/p>\n
In bilateral trade terms, Indonesia's non-oil and gas exports
\nto South Korea reached $1.8 billion in 2003, while oil and gas
\nexports stood at $2.55 billion in the same year.<\/p>\n
Local associations have been reluctant to open the domestic
\nmarket at the expense of losing the export market.<\/p>\n
Early last year, the local oleochemical industry was stunned
\nto learn that China had applied a lower import duty on Malaysia's
\npalm oil derivative products as the commodity was not included in
\na program that preceded a China-ASEAN FTA implementation.<\/p>\n
Officials at the Ministry of Trade, including former Minister
\nof Industry and Trade Rini MS Soewandi, had said the commodity's
\nexclusion from the Early Harvest Program (EHP) was decided upon
\nrequest from the industry itself.<\/p>\n
The industry opted to protect its local market at the expense
\nof the potential export market to China.<\/p>\n
Responding to the industry's complaint, the ministry quickly
\nlobbied its Chinese counterparts to have stearic acid included in
\nthe EHP. China eventually granted the request and agreed to cut
\nimport duties on Indonesia's stearic acid to the same level
\nimposed on the Malaysian commodity starting January this year.<\/p>\n
Stearic acid is a palm oil derivative used to bind and thicken
\nlotions and creams, and is also useful in making soaps and
\ncandles harder.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-anxious-ahead-asean-s-korea-talks-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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