2 Scenario Industry is Not Ready for ASEAN-China FTA

Rabu, 23 Desember 2009
Deputy Coordinating Minister for Economic Affairs of Industry and Trade Edy Putra Irawadi calls for the implementation of the Free Trade Agreement (FTA) China-ASEAN viewed from the positive side. Implementation of the FTA was an export market expansion efforts and the efforts to find sources of investment.

"So see the positive," said Edy when found in the Office of Coordinating Minister for Economic Affairs, Jalan Lapangan Banteng, Jakarta, this afternoon (23/12/2009).

About some of the industry was not ready to join the FTA, Edy said the government had set up scenarios to resolve the issue.

The first scenario, says Edy, the exchange of goods are not ready with the goods that are ready. Second, the delay time. Then, modify the tariff interval. Edy said the tariff reduction is expected intervals of 5 to fall to 2,5-3.

"We rate interval that was too far away, from 5 straight 0. Expected to 2,5-3," said Edy.

Edy said the feared disturbing FTA industry is China's FTA with Indonesia because Indonesia's ASEAN applies to the average rate for January 2010 only 0.9%. Meanwhile, for China, its average tariffs are still high in the amount of 2.9%.

"Our average tariff to China of about 2.9%. Well, that's a matter of 2.9% in January if applicable. If for ASEAN's non-tariff threat because we are including low," said Edy.

However, added Edy, unpreparedness will not hinder the implementation of FTA on January 1 next.

"FTA may indeed be, we plan to stay 1 January but for products that have weak competitiveness we have had 3 notifications," said Edy.


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