Indonesia, Australia to implement CEPA on July 5

16 May '20

1 min read

Pic: Shutterstock

In a recent virtual meeting between Indonesian trade minister Agus Suparmanto and Australian trade, tourism and investment minister Simon Birmingham, both sides agreed to implement the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on July 5, according to the trade ministry of Indonesia, which ratified the agreement in late February.

Under the agreement, Indonesian exports to Australia will get zero tariffs. Likewise, most of Australia’s exports, including live male cattle, frozen beef, dairy products and sugar, may enter Indonesia without any duties.

The Trade Ministry expects the export of some Indonesian products to Australia, such as automotive products, timber, textiles, electronics and communication tools, to increase despite recording a $3.2 billion trade deficit last year, according to an Indonesian newspaper report.

Indonesia seeks to attract more investment from Australia through the IA-CEPA, especially in higher education, vocational education, healthcare, construction, energy, mining and tourism sectors.

“We hope businesses, including small and medium enterprises, from both countries can reap the benefits from the IA-CEPA to spur trade and investment between the two countries,” Suparmanto was quoted as saying.

Fibre2Fashion News Desk (DS)

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