Indonesia could request delay in China-ASEAN FTA for certain products

26-Nov-09

China signed an initial free trade agreement (FTA) with the 10 members of Asean including Indonesia, Singapore, Thailand and Malaysia in November 2002. 2010 was set as a deadline by both sides for a broader pact. Under the agreement, import taxes on manufactured goods including textiles, footwear and electronics were to be scrapped. However, Indonesia plans to ask for a delay for manufactured goods including steel products, textiles, petrochemicals and electronics, as local producers fear it may hurt their business. The country is looking to solicit that the FTA be enforced in 2010 for certain industries, and look for a delay or postponement in a few sectors on concerns that cheaper Chinese products will flood the local market.