RI prepares 50-item FTA with U.S.<\/p>\n
Zakki P. Hakim, The Jakarta Post\/Jakarta<\/p>\n
The government has proposed 50 products and commodities as the
\ninitial focus of a possible future free trade agreement (FTA)
\nbetween the country and the U.S., according to a senior official
\nat the Ministry of Industry and Trade.<\/p>\n
Director of bilateral cooperation at the ministry Sondang
\nAggraini said that, according to a study carried out by the
\nPranata Institute of the University of Indonesia (based on
\nIndonesia's trade performance up to 2002), these products were
\nconsidered to have high potential to be exported to the U.S.<\/p>\n
\"But it is still a preliminary study. We need to find out more
\nabout the advantages and disadvantages of trading each of the
\ncommodities,\" Sondang told The Jakarta Post on Friday.<\/p>\n
She said that the products and commodities included textiles
\nand apparel, furniture, sound recorders, natural rubber latex,
\ntelecommunications equipment, crustaceans, mollusks and aquatic
\ninvertebrates. Textiles and apparel, for instance, recorded an
\nexport value of US$2.5 billion last year, or 33 percent of the
\ncountry's total exports in 2002.<\/p>\n
Indonesia is aiming to form an FTA with the U.S. as part of
\nefforts to boost trade with the world's largest economy. The
\nU.S. is the country's largest export market after Japan.
\nIndonesia's exports to the U.S. were around $7.6 billion in 2002
\n(mostly non-oil and gas), with a trade surplus of $4.9 billion.
\nThe two countries trade some 256 commodity groups.<\/p>\n
Several neighboring countries have moved ahead in forming FTAs
\nwith the U.S. and developed nations. Singapore, for example, has
\nestablished FTAs with the U.S., Japan, New Zealand, Australia and
\nthe European Union.<\/p>\n
Deputy director for North American Affairs Tulus Budhianto
\nsaid that an FTA with the U.S. would take more than three years
\nto be realized.<\/p>\n
He added that there were several bilateral trade issues that
\nhad to be resolved first before further talks could take place.
\nThe issues include rampant violation of intellectual property
\nrights in Indonesia, the banning of chicken-leg imports from the
\nU.S. (the government has since 2001 banned the import of chicken
\nleg quarters from the U.S. to protect local poultry farmers and
\nconsumers on concern that the commodity was not halal) and the
\nU.S. textile quota system.<\/p>\n
\"We might need at least three years to realize the FTA.
\nSingapore needed fully three years to establish an FTA with the
\nU.S.,\" he said.<\/p>\n
Meanwhile, Sondang added that the government had not yet
\nreceived the U.S. proposal about the FTA plan. She said that the
\nU.S. version of the list of products covered should have been
\ncompleted by July. \"But until now, we have not heard any news
\nfrom them.\"<\/p>\n
Sondang's office supervises bilateral cooperation with North
\nAmerica, China, Japan, Australia and South Korea.<\/p>\n
According to Sondang, the Hawaiian-based East-West Center was
\nworking on an in-depth study on the FTA to identify the
\nadvantages and disadvantage of a future agreement.<\/p>\n
Some of RI's main export products to the U.S. in 2002
\n(in US$ million)<\/p>\n
Group of commodities Export % of total<\/p>\n
value export to U.S.<\/p>\n
Textile and apparel products 2,500 33.07<\/p>\n
Furniture 490 6.48<\/p>\n
Sound recorders or reproducers 405 5.36<\/p>\n
Natural rubber latex 399 5.28<\/p>\n
Telecommunication equipment and parts 356 4.71<\/p>\n
Crustaceans mollusks & aquatic invertebrates 215 2.84<\/p>\n
Source: Ministry of Industry and Trade<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ri-prepares-50-item-fta-with-us-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }