Blog
An upcoming new trade agreement between Australia and Indonesia
Oct 23, 2018
Indonesia and Australia have announced the conclusion of negotiations on the matters of a new trade deal that will have a major impact on the economics of both countries. One of Australian representatives said that relations between Australia and Indonesia would be greatly improved by signing of the new agreement.
Indonesian President Joko Widodo and Australian Prime Minister Scott Morrison officially declared the conclusion of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
The Agreement, which has been negotiated over eight years, will touch upon several core issues including co-operation on economic affairs, education, counter-terrorism and oceanic issues.
Provisions of the new trade agreement will allow Australian farmers to export 500,000 tons of feed grains such as wheat or corn into Indonesia tariff-free. Australian industrial manufacturers of steel, copper, and plastics also will benefit from cooperation, as well as service industries including health, mining, telecommunications, tourism and education.
Australia and Indonesia arranged a negotiation of the free trade agreement in November 2010. The entire process of negotiations was hindered, with only two rounds of discussions held between 2010 and July 2013. Negotiations were then renewed in March 2016, following a three-year gap.
Both parties of negotiation agreed to conclude negotiations on the broader Regional Comprehensive Economic Partnership.
The above-mentioned regulations were highly appreciated by the Australian Chamber of Commerce and Industry. CEO James Pearson said:
"We hope that the announcement, and the prospect of a formal signing in the near future, will boost trade and investment between our two nations, and build on the fact that Indonesia and Australia are already partners, along with the rest of ASEAN, in our long-standing trade agreement AANZFTA."
Stay tuned with Offshorelicense to be informed of all latest legal news in the sphere of international relations.