Indonesia looks to Secure Limited Trade Deal with US after Washington Extends its GSP Access



Resty Woro Yuniar | South China Morning Post


Indonesia is looking to propose a limited trade deal with the United States, after Washington extended Jakarta’s access to a preferential tariff agreement following US Secretary of State Mike Pompeo’s October 29 visit to the Southeast Asian nation.

The new agreement could double trade value between the countries to US$60 billion in five years’ time, deputy foreign affairs minister Mahendra Siregar told This Week in Asia.

“We hope to further our discussion with the US about how to utilise Indonesia’s Generalised System of Preferences (GSP) status, and also to talk about a trade agreement that is more permanent and broader,” he said.

Under the GSP trade preference programme, 3,500 products from 119 designated beneficiary countries and territories are allowed duty-free and quota-free entry into the US. The Office of the United States Trade Representative (USTR) on October 30 confirmed that it had closed its review of Indonesia’s GSP eligibility “with no loss of benefits”.

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