Australia Expects Free-Trade Deals With Indonesia, Hong Kong This Year
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The Australian government expects to seal free-trade agreements with Indonesia and Hong Kong by the end of this year, its trade minister said on Friday.
Concluding the two agreements would wrap years of talks, which in the case of Indonesia have dragged on since 2010, stalling along the way as diplomatic tensions between the two sides flared.
“I think by the end of this year we’ll conclude successfully an FTA with Indonesia, an FTA with Hong Kong,” Trade Minister Steven Ciobo said at a business lunch in Sydney, when asked about the outlook for the next 12 months.
He gave no further details on timing, though a deal with Indonesia, Southeast Asia’s largest economy but only Australia’s 13th-largest trading partner, could come as soon as next month when Australian Prime Minister Malcolm Turnbull is scheduled to visit.
Ciobo, who has already sealed Australian trade deals with Peru and with the 11-nation Trans-Pacific Partnership this year, also said United States President Donald Trump’s protectionist rhetoric had made his counterparts elsewhere more willing negotiators.
Since Trump’s election, there has been a “desire from a number of countries to double down” on trade pacts, Ciobo said, helping him to seal deals.
He added that he was “hopeful” of also signing Australian agreements this year with the Pacific Alliance, a Latin American trade bloc and with the China-led Regional Comprehensive Economic Partnership.
A deal with Hong Kong, Australia’s 12th-largest trading partner, has been under negotiation since last year.
Two-way trade between the pair is worth roughly A$16.3 billion ($12 billion), according to Australian figures, nearly the same as the country’s two-way trade with Indonesia.
Questions & Answers
Q.Which of Australia's trading partners mentioned in the article holds a larger position in terms of two-way trade with the country?
Which of Australia's trading partners mentioned in the article holds a larger position in terms of two-way trade with the country?
Australia's two-way trade with Hong Kong is worth approximately A$16.3 billion. This figure is nearly the same as the country's two-way trade with Indonesia, making them comparable in trade value.
Q.What factor does Trade Minister Steven Ciobo believe has influenced other countries to be more amenable to trade agreements recently?
What factor does Trade Minister Steven Ciobo believe has influenced other countries to be more amenable to trade agreements recently?
Minister Ciobo attributes the increased willingness of other countries to negotiate trade pacts to United States President Donald Trump’s protectionist rhetoric. This has led to a desire from various nations to strengthen existing trade relationships.
Q.Besides Indonesia and Hong Kong, which other trade agreements is Australia hoping to finalise this year?
Besides Indonesia and Hong Kong, which other trade agreements is Australia hoping to finalise this year?
Australia is also hopeful of signing agreements this year with the Pacific Alliance, a Latin American trade bloc. Also, there are aspirations to conclude a deal with the China-led Regional Comprehensive Economic Partnership.
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