Rice and Sugar No Sign at CAFTA
Economy March 2nd, 2010
The government insists that the rice and sugar are not included in the commodities included in the China-ASEAN Free Trade Agreement (CAFTA) or the Free Trade Agreement of China-ASEAN.
Deputy Minister of Agriculture Krisnamurthi in Jakarta on Monday said, rice and sugar is a strategic food commodities for a country that entered the category Special Product (SP) which is allowed by the World Trade Organization (WTO).
“Therefore, the government will make policies that protect these commodities,” he said.
Alluding to other agricultural commodities, Bayu said, for plantation products do not need to worry because Indonesia is still far superior to China.
Plantation products of Indonesia, he added, even made it into the country such as crude palm oil (CPO), coffee, tea, rubber, and even processed products such as rubber tires and cramps.
In fact, he continued, the balance of Indonesia-China trade in the plantation sector during the last four years shows positive growth which is up from 800 million U.S. dollars to 2.4 billion U.S. dollars.
“Therefore do not really worry about CAFTA could even be a chance of our products into China,” he said.
However, he admitted, for the national horticultural products still need to be improved its competitiveness.
Meanwhile, to make protection against the entry of similar products from other countries, the government will implement a policy of non-tariff barriers with the instrument Sanitary and phytosanitary (SPS), food security, and biodiversity Kehalalan.
According to the Minister of Agriculture Suswono the CAFTA deal could increase exports specialized in exotic products or that exist only in Indonesia and not in another country.
“Including the plantation product exports such as palm oil seed, cocoa, rubber, is encouraged so that they could buy the optimum,” he said. He suggests, for fruit products like orange have a competitiveness improvement in the country.
“The challenge of this type of goods that must be evaluated whether or not we may increase or dnilai added competitiveness,” he said.
If it is not possible increased competitiveness, he added, it’s better not jump it but sejanis product better diverted to other commodities.
