Indonesia joins regional trade group

Indonesia joins regional trade group article image
Indonesia has entered into a regional trade agreement with Australia and New Zealand by joining the ASEAN-Australia and New Zealand Free Trade Agreement (AANZFTA). The Trade Minister Craig Emerson welcomed Indonesia's entry into the agreement. "We welcome Indonesia to this high-quality agreement and look forward to forging ever-closer trading and investment ties with our dynamic neighbour," Emerson said. Indonesia's expanding economy makes it an exciting addition to the FTA, especially as ASEAN and New Zealand account for 18 percent of Australia's trade in goods and services. "Indonesia has a fast-growing economy that is forecast to enter the global top 10 by 2030. 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," Emerson said. This addition to the FTA will mean that the proportion of Australian goods entering Indonesia tariff free will rise from 56 to 92 percent. An additional five percent of Australian goods will enjoy tariffs no greater than five percent. Indonesia will also benefit from the move with 99 percent of its current exports of merchandise to Australia being now tariff free. This will rise to 100 percent once the agreement has been fully implemented.


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