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ASEAN, Canada need to set parameters for FTA: Indonesian envoy
Indonesia has suggested that in order to jump-start trade talks between Canada and ASEAN, the two sides have to set their “level of ambition” for a potential free trade agreement.
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Indonesian Ambassador to Canada Abdul Kadir Jailani speaks at a focus group discussion on the ASEAN–Canada free trade agreement in Ottawa on Tuesday. (Courtesy of Indonesian Embassy to Canada/-)
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ndonesia's envoy to Canada has suggested that all parties involved in ASEAN-Canada trade talks must agree on a "level of ambition" that they want reflected in a possible free trade agreement (FTA) so as to progress talks and seize on the positive sentiment from both sides.
During a recent focus group discussion on the ASEAN-Canada FTA held by the Indonesian Embassy in Ottawa, Indonesian Ambassador Abdul Kadir Jailani said there was a wealth of potential benefits for the two sides if they entered into an FTA, especially considering Canada's status as a traditional ASEAN partner.
According to the embassy's estimates, Canada's gross domestic product (GDP) is projected to grow to US$5.11 billion with an ASEAN-Canada FTA in place, while ASEAN's GDP stands to grow to $39.36 billion.
But these estimates are contingent on eliminating tariffs, reducing non-tariff measures (NTMs) and facilitating trade under a full-scale liberalization scenario.
It is therefore important for both sides to set parameters for the FTA, Jailani said.
“It involves identifying the scale and scope of said agreement, ranging from the most ambitious in the form of a comprehensive FTA, to a [minimum-effort solution] in the form of norms- or standards-setting; from gradual tariff elimination and NTMs reductions to investment liberalizations and trade promotion facilitation," the envoy said in a statement received on Tuesday.
Furthermore, a potential agreement would increase ASEAN exports to Canada by $4.81 billion (15.5 percent) and Canadian exports to ASEAN by $2.67 billion (13.3 percent), according to one Canadian analysis.
