Saturday, 22 February 2020

Indonesia - Mozambique Trade Deal to See Lowered Tariff Posts

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - Trade Minister Enggartiasto Lukita and the Mozambique Industry and Commerce Minister Ragendra Berta de Sousa officially signed the Indonesia – Mozambique Preferential Trade Agreement (IM-PTA).

    The ratification of the bilateral trade deal was held on Tuesday, August 27, at the city of Maputo during one of the country’s largest trade fair, 55th International Trade Fair – FACIM 2019. The IM-PTA is the product of a year-long process and negotiation between both countries.  

    “I am proud that Indonesia finally has opened an inaugural trade deal with an African nation, which also acts as a new historical milestone in expanding market in the continent known as the continent of hope,” said Minister Enggartiasto.

    The stages that needed to be faced by the two countries were far from an instantaneous process as the negotiation was done one year prior in the Indonesia Africa Forum (IAF) in Bali on April 11, 2018.

    After three negotiations, it was finally sealed last month at Bali in the Indonesia-Africa Infrastructure Dialog (IAID) where both Indonesia and Mozambique officially announced the IM-PTA. This counts as one of Indonesia’s quickest bilateral deal negotiation similar to another deal known as the Indonesia – Chile CEPA, which was accomplished within one year.

    “This shows our commitment, the power struggle, and hard work of the negotiation team together with the State Ministries and organizations,” said the Indonesian Minister of Trade.

    The IM-PTA will see Indonesia lowering 242 tariff posts while Mozambique will also do the same by lowering 217 of its tariff posts in trades on various commodities such as fisheries, fruits, palm oil, margarine, rubber, soap, paper products, and textile products.

    TEMPO.CO