Indonesia-Morocco Begins Preferential Trade Negotiations


Jakarta – Indonesia and Morocco agreed to start the Preferential Trade Agreement (PTA) negotiations in early April. The agreement was made based on the results of the two countries’ technical meeting held last week.

“Indonesia and Morocco have determined the steps to start the PTA meeting which is planned to be held at the end of March or early April 2019 in Jakarta,” Made said, in an official statement.

He revealed, the two countries had agreed on the terms of reference in negotiations. Later, the meeting will discuss issues of trade barriers and efforts to increase business interaction between the private sector. From the results of the discussion, the government will identify products that have the potential for trade transactions in the agreement.

According to Made, PTA negotiations with Morocco were special because meetings between government and private parties were carried out in parallel. “We will discuss the list of products to be negotiated to get a tariff reduction or potential investment cooperation,” he said.

According to Made, the two countries have identified potential sectors and products to be upgraded. Some of Indonesia’s products include automotive components, leather products, textiles, spices, food and beverages, furniture, palm oil, paper, coffee, and fishery products.

While at a meeting between entrepreneurs, Morocco expressed its desire to explore cooperation in the oil palm, coffee, textile, rubber and tire sectors, agro industry, pharmaceuticals and olive oil.

Morocco is Indonesia’s nontraditional export market which is a hub for African and European markets. In 2017 Indonesia experienced a trade surplus of US $ 17.1 million against Morocco.

The total trade between the two countries in 2017 reached US $ 154.8 million with exports of US $ 86 million while imports amounted to US $ 68.8 million.

Indonesia’s export products marketed to Morocco include coffee (US $ 23.5 million); artificial staple fiber yarn (US $ 9.0 million); synthetic staple fiber yarn (US $ 7.5 million); palm oil and its fractions, whether or not refined (US $ 7.1 million); and amino oxygen compounds (US $ 4.6 million).

While Indonesia’s imports from Morocco are natural calcium phosphate (US $ 42.4 million); jacket suits for women (US $ 6.2 million); women’s blouse and shirt (US $ 4.4 million); mineral or chemical fertilizers (US $ 3.7 million); sports wear, ski clothes, and swimwear (US $ 1.4 million).

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