Free Trade Agreement Indonesia Australia

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. Two-way services trade was estimated at $6.2 billion in 2018/2019. Education-related travel dominates Australian services exports to Indonesia. The Australia Indonesia Business Council (AIBC) is a non-profit business association that promotes and facilitates trade and investment between Australia and Indonesia. Six rounds of negotiations between the two countries have been held until February 2017 and both Australian Prime Minister Malcolm Turnbull and Indonesian President Joko Widodo (Jokowi) have pledged to end talks by the end of the year in March 2017. [9] Negotiations under way during the year did not conclude the agreement until the end of 2017, which was 10 cycles until November. [8] In March 2018, Indonesian Foreign Minister Retno Marsudi acknowledged that negotiators were still trying to resolve some of the issues and postponed the deadline until the end of 2018. [10] Indonesian Trade Minister Enggartiasto Lukita wanted to sign the agreement in April 2018. [11] Shortly after Indonesia ratified the agreement, the Australian Monash University announced its intention to open a campus in Indonesia, becoming the first foreign university in Indonesia. [20] Indonesian economic observers have noted that the free trade agreement could lead to an increase in imports of agricultural products, including Australian beef, which could supplant the local beef industry. [21] The Australian Labor Party also challenged the terms of the contract on investor-state disputes and temporary work in Indonesia in Australia.

[22] Australia`s two-way trade with Indonesia was $11.7 billion in 2018/2019, making it our 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. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) sets the stage for a new era of closer economic relations between Australia and Indonesia and opens up new markets and opportunities for businesses, primary producers, service providers and investors. The AI-CEPA is a comprehensive agreement based on existing multilateral and regional agreements, including the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). The AI-CEPA came into effect on July 5, 2020. 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. More information is available on the IA-CEPA Department of Foreign Affairs and Trade website and on the Austrade IA-CEPA website, including the full text of the agreement, a guide on the use of IA-CEPA for the export or importation of goods. The Australian Trade and Investment Commission (Austrade) is the Australian government agency that helps Australian companies attract companies abroad for their products and services by reducing the time, costs and risks associated with selecting, entering and developing international markets.

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