SPECIAL TEAM SET UP TO ANTICIPATE FTA'S IMPACTS

Jakarta, Jan 4 (ANTARA) - Indonesia has set up a special team with members from various ministries and businesses to anticipate the impact of the implementation of the Asean-China Free Trade Agreement and CEPT AFTA.

"We are responding quickly by asking businesses to work together with the government to anticipate possible disadvantages for our industries," coordinating minister for the economy, Hatta Radjasa, said at a press conference here on Monday.

Members of the Association of Southeast Asian Nations (Asean) agreed to implement a Common Effective Preferential Tariff (CEPT) scheme through an Asean Free Trade Agreement (FTA) in 1992 later promoted to the Asean Economic Community for implementation in 2015.

In 2002 Asean and China made a comprehensive cooperation agreement which became the basis for the negotiations in 2004 for the establishment of the Asean-China Free Trade Agreement.
Hatta said the government set up the team to settle obstables in the industry and trade with members coming from various ministries and institutions concerned and businesses.

The team, he said, is expected to be able to improve the effectiveness of domestic market protection efforts from smuggling and also play a role in protecting and monitoring domestic flows of goods.

"The team will also assure that all goods and services meet the Indonesian National Standards of health, security and environment," he said.

The team will also monitor implementation of intellectual property rights and other consumer protection efforts and also anticipate possible unfair trade practices, he said.

In general the team's focus will be on strengthening export markets, improving land use and spatial order, infrastructure and energy development, extension of incentives, development of special economic areas, expansion of financing access and interest cost reduction as well as logistics system development.

"The other focus is improving public services and simplifying regulations," he said.

Hatta said "since its implementation as of 2004 tariffs for a total of 8,654 objects have been cut to zero percent until 2010."
"Based on inputs from businesses a total of 227 tariff objects for the CEPT AFTA need to be reviewed because they have potentials to weaken domestic industries," he said.

With regard the Asean China FTA a total of 228 tariff objects need to be reviewed. "It is the inputs from businesses that have made the government send a notification for renegotiations in the framework of both of CEPT AFTA and Asean-China FTA," he said.***2***
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