Tehran Times, Iran

Iran, Indonesia hold first Preferential Trade Agreement negotiation

Tehran Times Economic Desk

2 December 2010

KUALA LUMPUR – The First meeting of the Trade Negotiation Committee between Iran and Indonesia was held in Medan, the capital of the North Sumatra Province of Indonesia.

The two delegations reiterated that to pave the way for a Free Trade Agreement between the two countries the Preferential Trade Agreement must be finalized by 2011, the Mehr News Agency reported on Wednesday.

The two sides reviewed lists of commodities, tariff reduction models, preferential trade details for determining the origin of goods and a time–table for implementing the agreement, and reached on 16 articles.

Iran’s ambassador to Indonesia Mahmoud Farazandeh and the Indonesian Trade Ministry’s director general for international trade cooperation Gusmardi Bustami led each side’s delegations.

The negotiation is a follow-up to the Framework Agreement on Comprehensive Trade and Economic Partnership, signed in 2005, in which both countries agreed to pave the way for a Free Trade Agreement between the two brother countries.

Both parties expect that with the implementation of the preferential tariffs agreement the trade level between the two Islamic states will reach $2 billion by next year.

At present main commodities exported from Iran to Indonesia include petrochemicals, tomato paste, dates and tea, while various kinds of paper, furniture, iron and natural rubber comprise imported items from there