Australia-Free Trade Agreement with Indonesia big boost for live shipping.

The Minister for Trade Simon Crean and Indonesia’s Minister for Trade, Dr Mari E Pangestu, met yesterday in Sydney for talks aimed at strengthening the bilateral trade and investment relationship.

Both Ministers welcomed the final draft of the joint feasibility study on an Indonesia-Australia Free Trade Agreement (FTA) which would build on the solid foundation of the ASEAN-Australia New Zealand FTA.

"An FTA between Australia and Indonesia would be a major step forward in the bilateral trade and economic relationship," Mr Crean said.

"Both governments must now consider the study, including undertaking a process of further public consultation.

"The Australia-Indonesia trade relationship has not kept pace with the growing strength of many other aspects of the bilateral relationship."

With total two-way trade in 2007-08 of over $10 billion, Indonesia is Australia’s fourth largest trading partner in ASEAN and our 13th largest trading partner overall.

Australia exported $4 billion of merchandise goods and close to $1 billion in services to Indonesia in 2007-08.

In particular, Indonesia is Australia’s biggest market for live cattle exports.

Australian investment in Indonesia also is growing strongly and was valued at $3.4 billion at the end of 2007.

"A bilateral FTA could help realise the significant untapped potential in our trade relationship," Mr Crean said.

Both Ministers reaffirmed their commitment to a liberal international trading environment to ensure that trade plays a positive part in dealing with the global economic crisis.

"We welcome the soon to be signed ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) – Australia’s largest FTA agreement – which will help drive regional economic integration," Mr Crean said.

Mr Crean raised a number of market access concerns of Australian industry, relating to both goods and services exports, as well as investment.