RI to monitor closely KL-Tokyo FTA

RI to monitor closely KL-Tokyo FTA

Indonesia will monitor closely Malaysia's progress in setting up a free trade area with Japan in order to be aware of bilateral deals that may pose a threat to the local industry's market access to Japan, Minister of Trade Mari E. Pangestu said.

"We expect Malaysia, in liberalizing its trade and investment, to be consistent with what the ASEAN and Japan would establish in a regional Free Trade agreement," she said.

According to Mari, ASEAN members have agreed to liberalize in their bilateral pacts certain goods and sectors, and not to provide certain members with more access for certain goods than others.

Malaysia and Japan finalized on Sunday a comprehensive economic framework agreement that would lead to the signing of a FTA in December. The two countries overcame a deadlock in regard to the sensitive auto sector and steel industries of Malaysia, which Japan says is excessively protectionist.

Officials of the two nations refused to share the details of the compromises made to resolve the deadlock. -- JP