India and Indonesia on Tuesday formally launched the negotiations for a Comprehensive Economic Cooperation Agreement (CECA) that would cover economic cooperation, trade in goods and services and investment.
Speaking at the Indonesia-India Biennial Trade Ministers' Forum (BTMF) in Jakarta, Union Commerce and Industry Minister Anand Sharma, said: “we have launched our bilateral CECA negotiations. I am glad to note that the negotiations have got off to a good start. As agreed by our negotiators, the CECA would build on what has already been achieved under the ASEAN-India FTA and would be a comprehensive agreement, covering economic cooperation, trade in goods and services and investment.''
He said successful conclusion of the CECA would lead to a higher-level and mutually beneficial economic cooperation between the two countries.
The visit by Mr. Sharma assumes significance given the fact that India would be participating in ASEAN and East Asia summits next month at Bali under the chairmanship of Indonesia.
Both governments also agreed to establish a working group on trade and investment forum and another working group on identification and elimination of trade barriers. “Our senior officials have discussed issues relating to non-tariff barriers. India is particularly keen on bovine meat exports to Indonesia and higher participation in the pharmaceutical sector of Indonesia,'' he said.
Indonesia continues to impose ban on import of Indian buffalo meat citing that India is not free from Foot and Mouth Disease (FMD). India's contention is that we have FMD-free zones. At present India exports buffalo meat to more than 60 countries, including Malaysia, the Philippines, Saudi Arabia, Germany, the UAE, Russia and Jordan. Similarly, Indian pharmaceutical companies face delays in drug registration and there are certain regulations like those requiring foreign drug registration holders to set up a production facility in Indonesia within two years of registration and an FDI cap of 70 per cent, which inhibit Indian exports of pharmaceuticals and Indian investment in the pharmaceutical sector.
Indonesia and India will intensify efforts to explore ways and means of increasing trade and investment relations by eliminating trade barriers and creating better business environment.
India would be holding the prestigious “India Show'' in Jakarta during March 6-8 next year. Indonesia is the only country in ASEAN where the event is being held this year.
Earlier, Mr. Sharma had separate meetings with Mari Elka Pangestu, Trade Minister of Indonesia, where he discussed ASEAN relations and global issues such as the WTO negotiations and G-20. The Indian Minister also met Hatta Rajasa, Coordinating Minister for Economy, and discussed the issues of mutual interest.
