Draft Press Release for 4th Oct, BTMF.

Press Information Bureau

Government of India

Ministry of Commerce & Industry

04-October-2011 16:48 IST

Draft Press Release for 4th Oct, BTMF

Anand Sharma Launches Hopes to Conclude Negotiations for India-Indonesia CECA by 2012

Pushes for Removal of Non Tariff Barriers for Indian Pharmaceuticals

India Show in Jakarta in March 2012

The Union Minister of Commerce, Industry and Textiles, Shri Anand Sharma has launched negotiations for India-Indonesia Comprehensive Economic Cooperation Agreement (II-CECA). Speaking at the 1st Indonesia – India Biennial Trade Ministers’ Forum (BTMF) at Jakarta today, Shri Sharma said “we have launched our bilateral CECA negotiations and I am glad to note that the negotiations have got off to a good start. As agreed by our negotiators, the bilateral 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. I am confident that the India-Indonesia CECA would lead to a higher-level and mutually beneficial economic cooperation between the two countries.” India-Indonesia CECA was announced on 25th January 2011 during the visit of Indonesian President to New Delhi. Ms Mari Elka Pangestu, Indonesian Trade Minister led the Indonesian delegation at the BTMF. The BTMF reviewed and expressed satisfaction over Pre -Negotiation Consultations.

The visit assumes significance given the fact that India would be participating in the ASEAN and East Asia Summits next month at Bali under the Chairmanship of Indonesia. The government of Indonesia and India agreed to establish Working Group on Trade and Investment Forum and another Working Group on Identification and Elimination of Trade Barriers. “Our Senior Officials have discussed issues on both sides related to non-tarrif barriers. India is particularly keen on bovine meat exports to Indonesia and higher participation in the pharmaceutical sector of Indonesia” Said Shri Sharma. Indonesia continues to impose a ban on import of Indian buffalo meat citing that India is not free from Foot & Mouth Disease (FMD). India’s contention is that we have FMD-free zones from which deboned, deglanded buffalo meat is produced, fully conforming to OIE standards stipulated for export of meat from countries reporting FMD. Currently India exports buffalo meat to more than 60 countries including Malaysia, Philippines, Saudi Arabia, Germany, UAE, Russia and Jordan. Similarly, the 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% which inhibit Indian exports of pharmaceuticals and Indian investment in the pharmaceutical sector. Establishment of working group is a significant step towards resolution of these important issues.

Taking into account the potentials existing in both countries, the Government of 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. The two Ministers hoped that these efforts would help achieve the bilateral trade volume target of US$ 25 billion by 2015.

India would be holding its prestigious event – India Show in Jakarta during 6-8 March 2012. Indonesia is the only country in ASEAN where the event is being held this year. An MoU between the Govt of East Kalimantan Province and National Aluminum Co Ltd (NALCO) concerning Technical Cooperation on Aluminum Smelter Industry and Coal Based thermal Power Plant was also signed in the presence of the two Ministers.

Earlier in the day, Shri Sharma had a separate meeting with Ms Mari Elka Pangestu, Trade Minister of Indonesia where he discussed ASEAN relations and global issues such as the WTO negotiations and G20. The Indian Minister also met Mr Hatta Rajasa, Coordinating Minister for Economy and discussed the issues of mutual interest.

Leading a business delegation Shri Anand Sharma addressed the Economic Association of Indonesia and India(ECAII) on 3rd Oct where he said “India and Indonesia, which are among the 7 leading emerging nations, have many complementarities in trade and investment that need to be explored by the businesses of both sides.”

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DS/GK