Transcript Indonesia-Australia Comprehensive Economic Partnership

Indonesia-Australia
Comprehensive Economic Partnership
Agreement (IA-CEPA) Update
Michael Mugliston
Special Negotiator
Free Trade Agreement Division
7 March 2011
Australia – Indonesia
• The region’s two largest economies
• One of Australia’s most important bilateral
relationships on almost all fronts
• Scope exists for improving trade and
investment relationship
ASEAN our Second Largest Trading
Partner: But what about Australia - Indonesia?
Australia’s Trade with ASEAN
($billion)
100
Australia’s Major Trading
Partners (% 2009-10)
8.6 per cent annualised growth
14.8
80
17.7
60
15.3
11.5
40
9.6
4.1
20
4.4
0
04-05 05-06 06-07 07-08 08-09 09-10
Goods
Source: ABS, Treasury analysis
Services
China
United States
India
ASEAN
5.1
Japan
Republic of Korea
New Zealand
European Union
Two-way Goods and Services
Trade ($billion)
30
25
Indonesia
20
Malaysia
15
Philippines
10
Singapore
5
Thailand
0
Source: ABS
Australia’s Investment in Indonesia
Australia’s total investment
in Indonesia ($ billion)
Australian investment in
ASEAN by Country (2009)
6
16 per cent annualised growth in total investment
5
4
3
2
1
0
2005
2006
2007
Direct Investment
2008
2009
Total
Source: ABS
Indonesia’s Investment in Australia
Indonesia’s total investment
in Australia ($ billion)
Investment in Australia by
ASEAN Countries (2009)
12 per cent annualised decline
since 2005
Source: ABS
Indonesia-Australia Comprehensive Economic
Partnership Agreement (IA-CEPA) Negotiations
• Launched by Leaders, Nov 2010
– covering trade, investment and economic
cooperation issues
• Negotiations will take into account:
– the ASEAN-Australia-New Zealand FTA
(AANZFTA); and
– Australia-Indonesia FTA Joint Feasibility
study, April 2009.
Key AANZFTA Outcomes
• AANZFTA expected to enter into force for
Indonesia in the near future
• Extensive tariff reduction and elimination
commitments
– Indonesia to eliminate duties on 93.2 per cent
of tariff lines by 2025
• covering 93.4 per cent of Australia’s exports
– Australia to eliminate duties on 100 per cent of
tariff lines by 2020
Key AANZFTA Outcomes (cont’d)
• Enhanced certainty through “WTO-plus”
services commitments
• Legal protections for investment
• Commitments in intellectual property and
competition policy
• Regionally focussed economic cooperation
to assist ASEAN countries implement the
Agreement
Next Steps: IA-CEPA
• DFAT call for industry submissions
– Welcome inputs on trade, investment and
economic cooperation interests
• Joint Feasibility study highlights some key
“AANZFTA-plus” interests for both sides.
• Pre-negotiation consultations
• Further Engagement: G2G, G2B, B2B.
Conclusion
• AANZFTA paves the way for deeper
economic integration with ASEAN
• IA-CEPA represents a further step towards
realising a higher-level and mutually
beneficial economic partnership between
Australia and Indonesia
• Follow progress at
http://www.dfat.gov.au/fta/iacepa/index.html