   
  
WT/REG446/M/1  
 
8 November 2021 
(21-8463) Page: 1/3 
Committee on Regional Trade Agreements  
Hundred and first  Session    
 
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN INDONESIA AND 
AUSTRALIA (GOODS AND SERVICES)  
NOTE ON THE MEETING OF  1 NOVEMBER  2021 
Ambassador H.E. Dr. Cleopa Kilonzo MAILU (Kenya)  
1.1.  The 101st Session of the Committee on Regional Trade Agreements (hereinafter  "CRTA " or the 
"Committee ") was convened in Airgram WTO/AIR/RTA/ 26 dated 20 September  2021. 
1.2.  Under Agenda Item C.I II of the Session, the CRTA considered the Comprehensive Economic 
Partnershi p Agreement between Indonesia and Australia , goods and services (hereinafter "the 
Agreement"). The Chairman  stated that the Factual Presentation had been prepared by the 
Secretariat on its own responsibility in full consultation with the Parties, in accord ance with 
paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document 
WT/L/671).  
1.3.  The Chairman  indicated that the Agreement had entered into force on 5 July 2020 . It had been 
notified on 27 January 2021  under Article  XXIV:7(a) of the GATT  1994 and GATS  Article  V:7(a) 
(documents WT/REG4 46/N/1 and S/C/N/10 40) as an agreement establishing a free trade area for 
trade in goods within the meaning of Article XXIV of the GATT 1994 and for trade in services within  
the meaning of Article V of the GATS, respectively . The text of the Agreement and its Annexes was 
available on Parties' official websites  and in the WTO RTA database . The Factual Presentation on the 
goods and services aspects of the Agreement (document  WT/REG4 46/1 dated 23 August  2021) and 
questions and replies on this Agreement (document WT/REG4 46/2 dated 20 October  2021)  had been 
distributed. He also informed Members that, following the notification of the Agreement on Trade in 
Goods ( ATIGA ) between ASEA N Member States , the Secretariat would issue a Revision to the Factual 
Presentation updating the RTA table included therein.  
1.4.  The representative of Australia  thank ed the Chair and Members for the opportunity to make 
opening remarks on the Agreement. The Agr eement  had opened a new chapter in economic relations 
with one of Australia's closest neighbours and important trading partners , with bilateral trade 
amounting to  AUD 12.87 billion  in 2020. The Agreement had  entered into force on 5 July 2020.  
Australia  appreciat ed the WTO Secretariat's work in drafting the factual presentation.  
1.5.  He indicated that the Agreement  was a comprehensive and modern agreement that had 
enhance d Australia and Indonesia's economic relationship. It had built on the Association of 
Southeast Asian Nations  (ASEAN )-Australia -New Zealand Free Trade Area (AANZFTA) of which both 
Parties  were a party . Both parties were also part y to the Regional Comprehensive Economic 
Partnership Agreement (RCEP).  
1.6.  The Agreement  was a high -quality FTA that sought to promote growth in two -way trade and 
investment consistent with WTO principles and rules.  It was comprehensive and provide d substantial 
liberalisation across all sectors . It cover ed "substantially all trade" between the Parties. Australia 
had elimin ated all tariffs on goods originating from Indonesia upon entry into force. More than 99 % 
of Australian originating goods exports to Indonesia would  enter duty free or under significantly 
improved or preferential arrangements. The Agreement also addresse d non-tariff barriers and 
ensure d efficient customs settings for bilateral trade between the two countries.  WT/REG446/M/1  
 
- 2 - 
 
  1.7.  He said that the Agreement  aimed to deliver WTO -plus outcomes, particularly on services. 
Australia and Indonesia had made various improvements over their WTO commitments under the 
GATS, covering a wide range of sectors such as education, mining, energy, communications, health 
and aged care, tourism, architecture, engineering and construction, legal, financial, and 
infrastructure and transport services.  The Agreement  provide d a framework for developing the 
investment relationship to its potential. It provide d greater certainty and protection for Australian 
investors and investments in Indonesia, including high quality rules to promote and protect 
investm ents and protect investors, while preserving the Government's right to regulate in the public 
interest.  It also include d a new  AUD 40 million, five -year Economic Cooperation Program designed 
to unlock the vast potential of the bilateral economic relationship between Australia and Indonesia 
and enhance d the development benefits to Indonesia, including  in the  priority sectors of agri-food, 
advanced manufacturing, and services skills.  
1.8.  The representative of Australia  warmly thank ed Indonesia for its cooperation in the negotiation 
of this important Agreement and also for preparing for  its review. He also thank ed Members for their 
questions .  
1.9.  The representative of Indonesia  welcomed the CRTA's consideration of the  Agreement.  
1.10.  He expresse d his gratitude to the Secretariat for preparing the factual presentation, as well 
as to the Members that had submitted questions and for their interest in t he consideration of the 
Agreement. Indonesia also thank ed Australian colleagues, His Excellency Ambassador Mina and his 
team for their cooperation in this exercise.  
1.11.  Australia was one of Indonesia's important trading partners and a complementary source for 
trade and investment. The Agreement,  signed in 2019 , and implemented the year after, would  
provide the benefits of increasing market access for goods and services including labor, facilitating 
the flow of goods and customs, access to investment promotion and protection, economic 
powerhouse, and development of Indonesian human resources and econ omic cooperation programs 
for Indonesia. Indonesia also believe d that the Agreement  would  aid post -COVID -19 economic 
recoveries in both countries.  
1.12.  The Agreement cover ed provisions on trade in goods (including rules of origin, custom s 
procedures and trade f acilitation, TBT and SPS); trade in services (including movement of natural 
persons, financial services, telecommunications, and professional services); investment; e -
commerce; competition policy; economic cooperation; and institutional & framework provisi ons. 
There were also five side letters that express ed Australia's commitment to economic cooperation 
and people -to-people links.  In trade in goods, Indonesia had committed to eliminating tariffs on 
94.5% of its total tariff lines by 2020, while in trade in  services, Indonesia had opened 128 service s 
sub-sectors with an average foreign equity participation (FEP) rate of 67%.  
1.13.  The representative of Indonesia  stated that, i n terms of investment, Indonesia was committed 
to providing protection, non -discriminator y treatment, and an investor to State dispute settlement 
mechanism.  Australia was committed to opening market access for trade in goods, services and 
investment by eliminating all tariff lines and committing all service sub -sectors to a 100% foreign 
equity participation. Australia had also agreed to increas e quotas for work and holiday  visas, 
workplace -based training visas, Skill s Exchange programs, and funds for Economic Cooperation 
Programs.  
1.14.  Upon its entry into force in July 2020, the Agreement ha d had a positive impact on bilateral 
trade, despite the fact that trade flows had been se verely impacted by the current pandemic. 
Between January and August 2021, total trade between the two  countries had amounted to 
approximately USD 7.9 billion, a 74.56% increase over the previous year.  
1.15.  The representative of Indonesia  concluded by stating th at it was  important to emphasize 
Indonesia and Australia 's commitment to moving forward with their bilateral trade relationship, as  
had been  embodied in the Agreement, in an efficient and mutually advantageous manner.  
1.16.  The representative of the United State s thanked Indonesia and Australia for their presentation  
and for the transparency on th e Agreement. She also thanked the Secretariat for its efforts in 
preparing the factual presentation.  WT/REG446/M/1  
 
- 3 - 
 
  1.17.  The representative of the European Union  congratulated the Parties on the conclusion of the 
Agreement. She thanked them for the transparency provided and for the ir answers to the EU.  
1.18.  The representative of Canada  thanked Indonesia and Australia for their presentation s and 
their responses to Canada's questions . He thanked the Parties for their participation in this very 
important transparency process at the WTO.  
1.19.  The Chairman noted that the consideration of the Goods and Services Aspects of the 
Comprehensive Economic Partnership Agreement between Indonesia and Australia  had allowed the 
Committee to clarify a number of questions and conclude oral discussion of t he RTA in acc ordance 
with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow -up 
questions were invited to forward submissions in writing to the Secretariat by 8 November 2021 and 
the Parties were asked to submit replies in writing by no l ater than 22 November 2021. In accordance 
with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of th e 
meeting would be circulated promptly, in all WTO official languages, and made available on the WTO 
website.  
1.20.  The Co mmittee took note  of the comments made.  
__________  