Australian industries will benefit from duty free access for many steel, iron, copper and plastic products as part of the landmark Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) signed today.
IA-CEPA will deliver significant benefits to Australia’s manufacturing and resources sectors.
Minister for Industry, Science and Technology Karen Andrews welcomed the signing, saying IA-CEPA would help to further strengthen Australia’s economy, as well as ties between the two countries.
“IA-CEPA will help drive more growth for Australian businesses by creating exciting new market opportunities in Indonesia,” Minister Andrews said.
“The Australian steel industry will benefit in particular, with Indonesia agreeing to issue import permits for all rolled steel coil products.
“Importantly, Australia’s merchandise exports to Indonesia were approximately AU$7 billion in 2017, making Indonesia Australia’s 9th largest export market in 2017.
“Securing duty free or significantly improved preferential arrangements by 2020 on over 99 per cent of Australian goods exports to Indonesia will further grow our trade relationship with this very important regional partner.
“This agreement recognises the commercial benefits of our continued cooperation and represents enormous potential growth for both Australian and Indonesian industries.
“Breaking down barriers will not only strengthen economic ties but mutually improve our global competitiveness.”
Indonesia remains a growing market for Australian goods and services exporters, and total two-way trade with Indonesia was worth $16.4 billion in 2017, making Indonesia our 13th largest trading partner.
Free trade agreements like IA-CEPA are part of the Liberal National Government’s ambitious trade agenda, which is part of our plan to drive economic growth and create new jobs.