Australia Indonesia Free Trade Agreement Details

Australian Trade Minister Simon Birmingham said the agreement “will lead Australian and Indonesian relations to a new aircraft in which our economic and trade relations will be much deeper, stronger and richer for our two nations.” During the first foreign visit of new Australian Prime Minister Scott Morrison to Jakarta, he and Jokowi announced an agreement on the IA-CEPA on 31 August 2018. [12] However, the signing was delayed due to a bilateral dispute over Australia`s recognition of West Jerusalem as israel`s capital, which sparked Indonesian diplomatic protests. [13] [14] The agreement was finally signed in March 2019 by Lukita and Australian Trade Minister Simon Birmingham, subject to ratification by the Australian Parliament and the Council of Indonesian People`s Representatives. [15] [16] The trade ministers of both countries signed the agreement, whose negotiations began for the first time in 2010 in a Jakarta hotel, Indonesian Vice-President Jusuf Kalla. “We should expect that trade agreements will be properly reviewed and that trade unions and other members of civil society and industry will have the opportunity to make real contributions,” she said. “In terms of tariff reductions, this is a very good result. But even when it comes to trade facilitation, the kind of administrative barriers exporters must overcome to bring products to Indonesia will be safer,” said Dr. Gordon. A declaration of origin or certificate of origin forms the basis of an application for preferential treatment under the IA-CEPA. More details can be found in the guide above. The Australia Indonesia Business Council (AIBC) is a non-profit business association that promotes and facilitates trade and investment between Australia and Indonesia.

That`s why Prudence Gordon, general manager of trade and economics for the National Farmers Federation, told the New Daily that the agreement was “exceptional” for drought-affected farmers. Trade Minister Simon Birmingham told the New Daily that he found it “surprising that the ACTU is critical of a trade agreement that will actually create more jobs for Australians.” The size of Indonesia`s consumer market explains why industry members supported the new trade agreement. Information on export and import opportunities under IA-CEPA, AANZFTA and other free trade agreements can be found on the FTA portal. Bilateral trade negotiations between the two countries began in November 2010, with the IA-CEPA itself announced in a joint statement chaired by Susilo Bambang Yudhoyono and Prime Minister Von Julia Gillard. [4] [5] After several conferences and meetings during 2011, another joint communiqué was issued following a meeting in Darwin on 3 July 2012, calling for the opening of negotiations by the end of the year. [6] Relations between the two countries (following the 2013 Australian spying scandal and the Indonesian execution of Australian citizens in 2015) continued, and in 2015 Indonesia imposed tariffs on imports of Australian cattle.