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TWN
Info Service on WTO and Trade Issues (Jul25/19) Geneva, 16 Jul (D. Ravi Kanth) — United States President Donald Trump on 15 July announced that he has “finalized an important Deal with the Republic of Indonesia,” touting that this “landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History,” a claim that appears to cast a shadow over Jakarta’s multilateral positions on agricultural issues, said people familiar with the development. While the full details of the trade deal are yet to be disclosed, President Trump said that it is a preliminary deal. However, information about the trade deal appearing in media reports suggest that Indonesia has seemingly conceded more in market access than what it would gain from the US, said people familiar with the development. Earlier, on 7 July, President Trump had sent a tariff letter to Indonesia informing Jakarta that he would impose a new tariff of 32% on Indonesian goods as compared to the initial rate of 32% announced on 2 April, signalling no change. However, in the latest move, President Trump announced that Indonesian exporters will pay a lower rate of 19% on their goods entering the US, while US goods – whether agricultural or industrial – could enter Indonesia with a zero tariff. Writing in his Truth Social media website on 15 July, President Trump said: “As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in US Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s.” “For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people,” he added. “In addition, Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while US Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE,” he claimed. Further, he said that, “If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying.” President Trump thanked “the People of Indonesia for your friendship and commitment to balancing our Trade Deficit.” “We will keep DELIVERING for the American People, and the People of Indonesia!,” he concluded. As in his other trade deals, President Trump appears to be casting his eye on the vast rare earth mineral deposits in Indonesia, particularly cobalt. “Indonesia has some great products, and they also have some very valuable earths and various other materials. One of the things that you know they are known for is very high-quality copper ,which we’ll be using,” he said, according to media reports. He also told media persons on 15 July that “we have a couple of those deals that [are] going to be announced”. +
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