Free trade with Indonesia on the cards
The Age, Melbourne
Free trade with Indonesia on the cards
By Tim Colebatch, Canberra
26 June 2007
Australia and Indonesia are to consider negotiating a free trade agreement, potentially opening up South-East Asia’s biggest market, but adding to pressure on the embattled textiles and clothing industry.
The move comes after last week’s breakdown in four-nation negotiations for a Doha Round agreement to open up world trade. The director-general of the World Trade Organisation, Pascal Lamy, still holds hope of getting a deal this year, but few others do.
Trade Minister Warren Truss met his Indonesian counterpart, Mari Pangestu, in Jakarta to review an expert report on broadening bilateral relations.
Mr Truss said the experts urged a joint feasibility study into a free trade agreement. "This recommendation will now be considered by our leaders," he said.
The two countries are already negotiating an FTA via the slow-running negotiations between Australia, New Zealand and the 10-member Association of South-East Asian Nations. The report said more could be achieved in a bilateral negotiation unclouded by the concerns of others.
Such recommendations are usually accepted. If so, Indonesia will become the eighth country or group with which Australia is negotiating or studying separate free trade agreements - along with China, Japan, ASEAN, Chile, Saudi Arabia, Malaysia and South Korea. Malaysia is said to be closest to the finish line, but none are making particularly fast progress.
A meeting of Asia-Pacific Economic Co-operation forum trade ministers in Cairns next month could become the next test of flagging hopes to rescue the apparently sinking Doha Round, after talks between India, Brazil, the US and the European Union broke down last week.
With AGENCIES
