After years of painstaking negotiations Australia and Indonesia have finally signed a landmark free trade agreement (FTA) today, Monday 04 March 2019. It is a breakthrough for diplomats, who have long worried about the underperformance of trade between the two countries. They hope the deal will boost the business relationship and also reinforce strategic ties with our rapidly growing neighbour, which will overtake us as an economic power next decade.
The free trade deal was signed by Australian Trade Minister Simon Birmingham and his Indonesian counterpart Enggartiasto Lukita. Mr Birmingham says the deal will strengthen economic cooperation between the two countries, adding that exports of Australian frozen meats, live cattle, feed grains, dairy, citrus and rolled steel would receive favourable treatment under the agreement.
The FTA eliminates all remaining duties on Australian imports from Indonesia and includes a five-fold increase in holiday and work visas for Indonesians coming to Australia. The deal is Indonesia’s first major agreement of its type and will allow Australian-owned universities to operate in the country.
However some unions worry the deal will hurt Australian workers, open Indonesia workers coming to Australian to potential abuse by employers and undermine national sovereignty by allowing international rulings on investment disputes.
The FTA was meant to be signed last year, with negotiations concluding in August. But the signing was delayed when Prime Minister Scott Morrison announced the government was considering moving Australia’s Israeli embassy to Jerusalem.
