Australia And Indonesia Free Trade Agreement

“The economic burdens associated with COVID-19, both in Australia and Indonesia, make this agreement even more important because it will better stimulate growth and investment in both countries during the recovery phase.” Austrade and a number of our partners have developed practical guidelines for Australian companies on key sectoral opportunities in Indonesia under the AI-CEPA. Check this section from time to time to see the latest information. Australia offers considerable opportunities to develop its trade, investment and economic relations with Indonesia. This agreement will help diversify Australia`s trade and strengthen our economic and cultural relations with one of our closest and closest neighbours. The Comprehensive Economic Partnership Agreement between Indonesia and Australia (IA-CEPA) is a bilateral agreement signed between Australia and Indonesia in March 2019 and ratified by Australia in November 2019 and Indonesia in February 2020. The agreement contains a free trade agreement that removes tariffs on almost all goods traded between the two countries, as well as easing investment rules in Indonesia for Australian businesses and increasing the quota for Indonesians seeking vocational training in Australia. Australia`s two-way trade with Indonesia totaled $11.7 billion in 2018/2019, making it Australia`s 14th largest trading partner. Resources and agricultural products are one of Australia`s largest exports of goods to Indonesia, which is one of Australia`s largest markets for coal, crude oil, wheat and live animals. Bilateral trade negotiations between the two countries began in November 2010, with the IA-CEPA itself announced in a joint statement chaired by Susilo Bambang Yudhoyono and Prime Minister Von Julia Gillard. [4] [5] After several conferences and meetings during 2011, another joint communiqué was issued following a meeting in Darwin on 3 July 2012, calling for the opening of negotiations by the end of the year. [6] Relations between the two countries (following the 2013 Australian spying scandal and the Indonesian execution of Australian citizens in 2015) continued, and in 2015 Indonesia imposed tariffs on imports of Australian cattle.

Finally, Indonesian Trade Minister Thomas Lembong and his Australian counterpart Steven Ciobo announced the resumption of negotiations in March 2016. [7] Four rounds of negotiations took place prior to the resumption of talks. [8] “This is the most comprehensive bilateral trade agreement ever signed by Indonesia, and it will give Australian exporters a competitive advantage, particularly at a time when many are doing so harshly in the wake of the COVID-19 crisis.