Australia Welcomes Indonesia Into Regional FTA

Australia's Trade Minister Craig Emerson has welcomed the entry into force in Indonesia of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), hailing it a milestone in the relationship between the two countries.

The move means the proportion of Australia's current merchandise exports eventually entering Indonesia tariff-free will rise from 56% to 92%. Another 5% of Australian exports will enjoy tariffs no greater than 5%.

For Indonesia, 99% of its current merchandise exports to Australia will enjoy tariff-free treatment from January 10, 2012, rising to 100% when the agreement is fully implemented in 2020.

"Indonesia has a fast-growing economy that is forecast to enter the global top 10 by 2030," Emerson said. "As one of the Asian success stories in this, the Asian Century, its value to Australia and the region as a trading partner and friend is huge. We welcome Indonesia to this high-quality agreement and look forward to forging ever-closer trading and investment ties with our dynamic neighbour."

AANZFTA is the most comprehensive trade agreement ever negotiated by ASEAN, covering goods, services, investment and intellectual property.

ASEAN and New Zealand together account for 18% of Australia's total trade in goods and services. Emerson said there was great potential to further strengthen and expand the relationship between Australia and Indonesia.

Prime Minister Julia Gillard and President Susilo Bambang Yudhoyono agreed in November 2010 to begin talks on an Indonesia-Australia Comprehensive Economic Partnership Agreement, to further integrate the two economies.

Source: Tax News