RI, Japan FTA to boost ASEAN-Japan trade liberalization
RI, Japan FTA to boost ASEAN-Japan trade liberalization
Zakki P. Hakim, The Jakarta Post, Jakarta
A free trade agreement (FTA) between Indonesia and Japan, which
has been initiated by the two governments, will not pose a threat
to a similar trade deal currently being developed between Japan
and Southeast Asian countries, an official said on Monday.
"The bilateral trade agreement (between Indonesia and Japan)
would instead accelerate the process in establishing ASEAN-Japan
FTA," Ministry of Trade's director general for international
cooperation Pos M. Hutabarat said on the sidelines of a two-day
meeting to discuss a possible FTA between the two nations.
The meeting is an initial move toward starting formal rounds
of bilateral FTA talks, whereas the Association of Southeast
Asian Nations (ASEAN) is scheduled in April to start trade
liberalization talks with Japan.
Monday's meeting discussed, among other things, the cost and
benefits of establishing an Indonesia-Japan FTA, Pos said, adding
that he had yet to make a formal calculation on how the FTA would
boost trade between the two countries.
Indonesia's non-oil and gas exports to Japan in the first
seven months of last year totaled US$4.53 billion, up 17.86
percent from the $3.85 billion in the same period in 2003.
The meeting is the first of three scheduled sets of talks
ahead of formal negotiations for a preferential trade agreement.
The preliminary talks will produce a full-scale assessment on FTA
in mid-April to be submitted to relevant ministers of the two
countries, Pos said.
Afterward, "the ministers will determine whether or not an
Indonesia-Japan FTA is needed, and if it is deemed necessary, to
decide when negotiations will start," he explained.
The meeting is expected to explore import duties, labor
regulations, immigration, taxation, trade facilitation and
investment issues in both countries.
A bilateral trade agreement is considered a faster measure in
liberalizing trade between nations compared to deals involving
more than two countries.
According to Pos, neighboring countries were ahead of
Indonesia in establishing FTAs with Japan. Singapore and the
Philippines have already signed such agreements, but only the
city-state has implemented the deal as the Philippines is still
straightening out several technical details.
Negotiations with Thailand and Malaysia are also under way,
and are unlikely to be completed anytime soon, Pos said, citing
agricultural and investment issues as among the obstacles.
ASEAN and Japanese leaders agreed at last year's ASEAN summit
in Laos to commence negotiations in April 2005, and to conclude
the talks within two years.
The six founding ASEAN members and Japan made a schedule to
establish a free trade area by 2012, and the newer members by
2017.
Founding ASEAN members are Brunei, Malaysia, Indonesia, the
Philippines, Singapore and Thailand, while Cambodia, Myanmar,
Laos and Vietnam joined later.