White House releases US – Indonesia trade deal framework
Indonesia will open its doors to US industrial products, technology, and agricultural goods by eliminating 99% of tariff barriers. The US will sell products manufactured domestically to Indonesia at zero tariff rates while reducing to 19% the reciprocal tariffs on originating goods of Indonesia.
A view of the cargo port in Bayonne, New Jersey, the US. (Photo: Xinhua/VNA)
Washington D.C., (VNA) – The US and Indonesia agreed to a framework for negotiating an Agreement on Reciprocal Trade to strengthen the bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets, the White House revealed in a joint statement on July 23 (Vietnam time).
The agreement will build upon the long-standing economic relationship, including the US – Indonesia Trade and Investment Framework Agreement signed on July 16, 1996.
In a post on his Truth Social platform, US President Donald Trump revealed that both sides have agreed that Indonesia will open its doors to US industrial products, technology, and agricultural goods by eliminating 99% of tariff barriers. The US will sell products manufactured domestically to Indonesia at zero tariff rates while reducing to 19% the reciprocal tariffs on originating goods of Indonesia.
President Trump said that Indonesia has committed to providing the US with essential minerals and has agreed to "major deals" worth tens of billions USD to purchase Boeing aircraft, agricultural products, and energy resources.
The two countries will negotiate facilitative rules of origin that ensure the benefits of the agreement accrue primarily to both sides. Besides, they are committed to strengthening economic and national security cooperation to enhance supply chain resilience and innovation.
In the coming weeks, they will negotiate and finalise the Agreement on Reciprocal Trade, prepare the agreement for signature, and undertake domestic formalities in advance of the agreement entering into force.
Last week, th🍸e🍰 US declared it would impose tariffs of up to 32% on goods from Indonesia./.
The future tasks must ensure Vietnam's core interests while helping consolidate and strengthen the Vietnam-US Comprehensive Strategic Partnership, bringing benefits to both countries and their consumers, and contributing to peace, stability, cooperation, and development in the region and the world, PM Chinh said.
At the meeting in Washington, D.C. on April 24, Hartarto reiterated Jakarta’s commitment to addressing the US trade deficit with Indonesia, the Indonesian media reported.
At an event updating SERT’s activities, Singaporean Minister for Manpower Tan See Leng announced Singaporean government’s Business Adaptation Grant which will be capped at 100,000 SGD (78,000 USD) per company and will have a co-funding element.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
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Thai Acting Prime Minister Phumtham Wechayachai on August 7 outlined his strategy for tackling drug problems in Thailand, aiming for a "Zero Drugs Thailand" within three months.
The US has described Malaysia's role as Chair of the Association of Southeast Asian Nations (ASEAN) as vital in helping ease tension between Thailand and Cambodia.
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Cambodia and Thailand vowed not to undertake provocative actions that may escalate tensions, including entering the other side’s air space and territory, and refrain from constructing or enhancing military infrastructure.
Trenggono emphasised that the Indonesian government aims to increase the total coverage of MPAs to 97.5 million hectares by 2045. This initiative forms a key component of the “Golden Indonesia 2045” vision, which prioritises sustainable maritime development and environmental protection.
