EPA agreement to lead to removal of tariff and non tariff barriers.(Economic News In Brief)

Indonesian Commercial Newsletter, December, 2004

Economic Partnership Agreement between Indonesia and Japan will lead to slashing of tariff and non-tariff barriers, Trade Minister Mari Elka Pangestu said. Indonesia and Japan have agreed to form Joint Investment Committee as an initial step toward Economic Partnership Agreement (EPA) expected in mid 2005 between the two countries.

Marl said EPA could also mean less strict standards demanded for Indonesian commodities entering the Japanese market. She said a number of Indonesian commodities such as processed timber, and manufactured products are less competitive in Japan because of high tariff and quality standards. She said talks on EPA is now entering an initial stage, to form a working group to be followed with talks between related ministries.