Trade Agreement Indonesia Australia

The fact that the two countries entered into the agreement with such a different trade policy is a given in the current context of trade war and protectionism. The COVID 19 pandemic is making the situation worse. This year will be a difficult year for trade. The COVID 19 pandemic resulted in an unprecedented cessation of activity. The shock is two-way and affects both supply and demand. Travel restrictions and measures of social disintegration have disrupted the basic instruments of international trade: travel, personal meetings and major events. Supply chains are collapsing. Looking at some of the results of the AI-CEPA, it appears that Australia benefits most from the agreement, with a series of tariff reductions and tariff quotas (TRQs) imported for many of its major exports to Indonesia. But it refutes inequalities in their trade diplomacy. Information on export and import opportunities under IA-CEPA, AANZFTA and other free trade agreements can be found on the FTA portal. Shortly after Indonesia ratified the agreement, Monash Australian University announced its intention to open a campus in Indonesia, becoming Indonesia`s first foreign university. [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] On November 26, 2019, the Australian Parliament ratified the agreement under the 2019 Tariff Amendment Act (in addition to CEPs with Peru, Hong Kong and China) and the bill received royal approval on December 3, 2019. [17] The Council of People`s Representatives ratified the agreement at a plenary session on 6 February 2020. [18] It came into force on July 5, 2020. [19] The IA-CEPA contains clauses relating to bilateral free trade, investments, qualification visas, investor arbitration procedures, e-commerce and intellectual property protection. [1] Under the agreement, Indonesia will lift tariffs on almost all Australian products exported to Indonesia, while all Indonesian products exported to Australia will be duty-free. [2] Australian companies could hold a majority stake in Indonesian telecommunications, transportation, health and energy companies. In addition, the number of working holiday visas issued each year in Donesier would increase from 1,000 to 4,100 (then to 5,000[1] by 2026, and Australian universities could open Indonesian campuses. [3] The Australia Indonesia Business Council (AIBC) is a non-profit business association that promotes and facilitates trade and investment between Australia and Indonesia.