Indonesia urged to join TPP deal

Vietnam enticed Indonesia to follow in its footsteps to become a member of the US-led TPP, as it pointed out various advantages to joining the humongous regional trade deal.
Vietnamese Ambassador to Indonesia and deputy chief negotiator for the TPP, Nguyen Nguyet Nga, said on Wednesday that Indonesia’s “strong leadership” was important to expedite development in Southeast Asia. She added that the more Indonesia engaged in regional agreements such as the TPP, the better it would be for Asean nations to build political and economic cooperation with global powerhouses.
Nguyen said that, economically, Indonesia would also enjoy benefits from many aspects of the TPP, citing Vietnam’s many gains since joining the agreement in 2010, which ranged from market access for key export products and the transfer of technology, to stronger ties with trading partners.
“We saw the TPP as the largest trade deal with high standards and serving as a plurilateral free trade agreement that brings about new resources for [Vietnam’s] development,” Nguyen said in a lecture at the Foreign Ministry in Jakarta.
She added that Vietnam saw the TPP as an opportunity for the country to reduce its economic dependence on the East Asian market, which amounted to 60 per cent of its exports. China is the largest market in this region.
The Communist Party-run country’s exports quadrupled to US$162.4 billion in 2015 from $48.6 billion in 2007, a year before it commenced domestic talks on joining the TPP. Foreign investment also rose to $11.8 billion in 2015 from $2.6 billion in 2007.
Vietnam, the second-fastest growing economy in Southeast Asia after the Philippines, also enjoys a 0 per cent tariff rate for its products, such as textiles, apparel, footwear and agro-aquatic products, when entering the market of TPP members.
The Foreign Ministry’s Policy Assessment and Development Agency head Siswo Pramono said that Indonesia could learn from Vietnam’s experience and capability as a member of the TPP.
“We see Vietnam as gaining advantages since joining the TPP,” Siswo said.
The TPP is one of the world’s biggest multinational trade deals covering around 40 per cent of global gross domestic product (GDP) signed by Vietnam, Australia, the US, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore in February. The agreement, which was finalised in February after seven years of negotiations, is currently awaiting ratification from state parties to be enforced.
The TPP’s future, however, may be in jeopardy, as there is division in the US over the benefits of the TPP. President Barack Obama is a firm backer of the agreement, while Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton have refused to support it on their campaign trails.
Indonesia has yet to give its decision over the TPP, but President Joko “Jokowi” Widodo has expressed the country’s intention to join the group during his two visits to the US. In his February visit to the US, Jokowi said the country needed to take a cautionary stance before commencing negotiations to join the TPP.