Indonesia, United States Partner to Advance Free and Fair Trade
Washington - As the target date to create free and open trade and investment approaches, the United States and Indonesia continue to support a multilateral trading system for all 21 Asia-Pacific Economic Cooperation (APEC) member economies.
Established at Bogor, Indonesia, in 1994, and reaffirmed ( http://www.america.gov/st/texttrans-english/2009/November/20091115100228ptellivremos0.9120905.html ) during the 2009 APEC Economic Leaders' Meeting, the primary goal of the Bogor Declaration is "to support growth and prosperity in the Asia-Pacific region, through free and open trade and investment." In industrialized economies, the planned completion date is 2010; 2020 is the target for developing economies.
Thus far, APEC members have made progress toward regional economic integration by improving the flow of goods and services and coordinating national and international inspecting and testing standards. Between 2002 and 2006, transaction costs in APEC decreased by 5 percent, and average tariff rates fell from approximately 17 percent in 1989 to 5 percent in 2007.
These steps represent significant progress toward the Bogor goals, but that progress was slowed by the 2008 economic crisis. As the region focuses on recovery and economic growth, meeting the 2010 target is in doubt. In 2009, Singapore hosted more than 120 APEC meetings focused on restoring growth. In February, the APEC Secretariat said progress toward free and open trade (currently occurring in Australia, Canada, Japan, New Zealand, and the United States) is "not a point of conclusion but a means of informing future action." (See "Economic Recovery, Resisting Trade Protectionism Top APEC Agenda ( http://www.america.gov/st/business-english/2009/November/20091104135511dmslahrellek0.9469721.html ).")
In November 2009, the State Department's senior official for APEC, Kurt Tong, underscored the future-looking significance of the Bogor goals, saying they pull "APEC as a group in the same direction towards a higher standard of trade and investment liberalization."
A KEY REGIONAL PARTNERSHIP
The United States and Indonesia are working together to achieve economic recovery and advance the "three pillars" of APEC's Bogor agenda:
. Liberalize trade and investment.
. Facilitate business.
. Increase economic and technical cooperation.
The 2007 expansion of the U.S.-Indonesia trade and investment framework agreement (TIFA) is aiding recovery from the recent economic crisis. Originally signed in 1996, the TIFA represents significant bilateral cooperation and serves as a mechanism for dialogue.
Chaired by Indonesia's Ministry of Industry and Trade and the Office of the United States Trade Representative, bilateral working groups under the TIFA focus on intellectual property rights, agriculture, services and investment. Those discussions led to Indonesia's co-hosting with the United States the first Asia-Pacific Regional Dialogue to Promote Trade in Legally Harvested Forest Products in 2009. (See "Indonesia, U.S. Promote Conservation of East Asian Forests ( http://www.america.gov/st/energy-english/2009/July/20090701161049abretnuh0.1735803.html ).") The TIFA is also the basis for exploratory talks concerning a bilateral investment treaty and an updated investment incentive agreement.
Indonesia's participation in these bilateral discussions is a step toward achieving the Bogor goals. In addition, the United States and Indonesia are collaborating to fight protectionist policies and, through APEC, are working to keep markets open and free.
During a meeting with Minister of Trade Mari Pangestu in May 2009, U.S. Trade Representative Ron Kirk said, "The United States and Indonesia have a common interest in further expanding and deepening our economic relationship by taking specific steps to resolve outstanding issues as well as through potential new initiatives."
Steps taken by the two countries in conjunction with APEC include supporting the multilateral trading system, accelerating regional economic integration, strengthening economic and technical cooperation and enhancing human security. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell supported these goals during his March 3 testimony before Congress, calling for "continued integration of the U.S. economy with APEC economies [to] benefit workers, consumers, and businesses in the region." (See "Strong U.S. Engagement with Asia-Pacific Region is Vital ( http://www.america.gov/st/peacesec-english/2010/March/20100304131800dmslahrellek0.2256433.html ).")
High-level bilateral trade dialogues will continue in May, during the Obama administration's first Cabinet-level trade mission to the East Asia-Pacific region. Commerce Secretary Gary Locke plans to travel to Jakarta, Indonesia, as well as Shanghai, Beijing and Hong Kong. These talks represent a continuation of the process to build a comprehensive relationship between the United States and Indonesia with regard to increased cooperation on bilateral, regional and global issues.
