RI excludes 26 products from CEPT<\/p>\n
JAKARTA (JP): Dozens of agricultural products need protection
\nprior to the full implementation of the ASEAN Free Trade Area,
\nMinister of Agriculture Sjarifudin Baharsjah said yesterday.<\/p>\n
Sjarifudin said that 26 agricultural commodities are
\nvulnerable to foreign competition and therefore need to be
\nexcluded from the Common Effective Preferential Tariff (CEPT)
\nscheme.<\/p>\n
\"The 26 agricultural commodities are grown mainly by small-
\nholders, and we will not open the domestic market to imports in
\norder to protect the interests of the farmers,\" Sjarifudin said.<\/p>\n
The 26 commodities, he added, include rice, sugar, milk and
\nfruit.<\/p>\n
He said ASEAN agriculture ministers would meet between Aug. 21
\nand 23 in Singapore to further discuss which agricultural
\ncommodities the CEPT tariff reduction scheme would cover.<\/p>\n
Under the scheme, ASEAN members are required to reduce tariffs
\nto a maximum of five percent by January 2003.<\/p>\n
However, the Sultan of Brunei, Hassanal Bolkiah, suggested at
\nthe 28th ASEAN Ministerial Meeting in Bandar Seri Begawan early
\nthis week that the ASEAN Free Trade Area (AFTA) be accelerated by
\nthree years to the year 2000.<\/p>\n
\"Although we have a list of what we call 26 sensitive
\nagricultural commodities, it doesn't mean that we are not ready
\nfor AFTA... Compared to other ASEAN countries, our list is the
\nshortest one,\" Sjarifudin was quoted by Antara as saying.<\/p>\n
Outside the 26 commodities, however, the minister acknowledged
\nthat Indonesia has included some other agricultural products in
\nthe CEPT scheme.<\/p>\n
The CEPT was kicked off on Jan. 1, last year, and has two
\nprograms for reducing tariffs, the so-called \"normal track\" and
\n\"fast track\" programs.<\/p>\n
Most items are on the normal track, and only a few are in the
\nfast track, including cement, fertilizer, pulp, textiles, jewelry
\nand precious stones, furniture from wood and rattan, leather
\ngoods, plastics, pharmaceuticals, electronics, chemicals, rubber
\nproducts, vegetable oil, ceramics and glass, as well as copper
\ncathode.<\/p>\n
The government and businesses have had mixed reactions to the
\nproposal to accelerate AFTA.<\/p>\n
Minister of Trade Satrio B. Joedono expressed his optimism on
\nIndonesia's readiness for the acceleration of AFTA. Meanwhile,
\nMinister of Industry Tunky Ariwibowo took a more cautious view,
\nsaying that Indonesia has a very different industrial structure
\nthan Brunei.<\/p>\n
Coordinating Minister for Industry and Trade Hartarto noted
\nthat, comparing Indonesia's trade balance with other ASEAN
\ncountries, Indonesia is actually ready to accept the acceleration
\nof AFTA.<\/p>\n
Indonesia's trade balance with ASEAN countries recorded a
\nsurplus of US$2.47 billion last year, with exports valued at $5.2
\nbillion and imports at $2.73 billion.<\/p>\n
Sudwikatmono, a senior executive at the powerful Salim Group,
\nsaid big companies would be ready whenever Indonesia accepted an
\naccelerated AFTA.<\/p>\n
\"We should not worry about the idea of free trade in ASEAN. We
\nhave prepared ourselves to enter the ASEAN market,\" Sudwikatmono
\ntold journalists at Cikarang in Bekasi, West Java.<\/p>\n
Economist Rizal Ramli, from the Econit research institute,
\nnoted yesterday that the acceleration of AFTA is good for
\nIndonesia in the long run. \"However, in the short term, Indonesia
\nhas to bear the economic adjustment costs if it accepts AFTA
\nahead of the original schedule.\"<\/p>\n
He suggested that the government increase the number of
\nIndonesian products in the CEPT's fast-track program rather than
\naccepting the implementation of AFTA in 2000.(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-excludes-26-products-from-cept-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}