Wed, 10 Feb 2010

The Indonesian government has sent a letter to China requesting a renegotiation of the ASEAN-China Free Trade Agreement [ACFTA].

“Director General for International Trade Gusmardi [Bustami] sent a letter of request to renegotiate with China. The request is still in process and will take some time,” Industry Ministry M.S. Hidayat told Antara on Tuesday.

Hidayat further said that Gusmardi had been communicating with the Chinese government over the renegotiation, which he believed to be in progress.

President Susilo Bambang Yudhoyono previously said that he would pursue talks with China to avoid negative impacts from the free trade deal between ASEAN and China.

The ACFTA, based on an agreement signed in 2004 and fully effective as of Jan. 1 this year, has introduced zero tariffs on 6,682 tariff posts in 17 sectors, including 12 in manufacturing and five in agriculture, mining and maritime sectors. (nkn)