Hatta Rajasa, Coordinating Minister for Economic Affairs, has said that Indonesia has notified the Association of Southeast Asian Nations (ASEAN) that it wishes to renegotiate the implementation of the free trade agreement (FTA) with China.
The ASEAN FTA with China reduces tariffs on almost 6,700 products over various sectors, many of them in manufacturing.
It came into force on January 1, 2010, and there has been increasing opposition in Indonesia, particularly from within the textile industry, where it is felt that there will be increased competition from cheaper Chinese imports.
Hatta Rajasa announced that the government has therefore forwarded a notification to ASEAN whereby Indonesia will propose a renegotiation of the phasing-in of some of the proposed tariff reductions.
It was explained that, within the ASEAN FTA with China, there are three phases of tariff reductions; some coming in immediately, some taking effect from 2012, and the remainder coming into force after 2018.
Indonesia will propose that tariff reductions on 228 selected products would be delayed by moving them between phases. 60 items would even be changed from having immediate effect to the latest phase possible.
The tariffs proposed to be delayed would include those on items within the steel, iron, textile, electronics, petrochemical, furniture and footwear industries.
In recompense, and as part of any negotiation, Indonesia would suggest that another 153 lines would face earlier tariff reductions than initially planned.
The Indonesian government has, however, also confirmed that it is still committed to the FTA. It has reminded all parties that Indonesia cannot act unilaterally and that there are procedures that have to be followed in any renegotiation.
Meanwhile, it is organizing a team of officials and private sector representatives, to promote and evaluate the proper implementation of the FTA.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment