Washington D.C., (VNA) – The US and Indonesia agreed to a framework for negotiating an Agreement on Reciprocal Trade to strengthen the bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets, the White House revealed in a joint statement on July 23 (Vietnam time).
The agreement will build upon the long-standing economic relationship, including the US – Indonesia Trade and Investment Framework Agreement signed on July 16, 1996.
In a post on his Truth Social platform, US President Donald Trump revealed that both sides have agreed that Indonesia will open its doors to US industrial products, technology, and agricultural goods by eliminating 99% of tariff barriers. The US will sell products manufactured domestically to Indonesia at zero tariff rates while reducing to 19% the reciprocal tariffs on originating goods of Indonesia.
President Trump said that Indonesia has committed to providing the US with essential minerals and has agreed to "major deals" worth tens of billions USD to purchase Boeing aircraft, agricultural products, and energy resources.
The two countries will negotiate facilitative rules of origin that ensure the benefits of the agreement accrue primarily to both sides. Besides, they are committed to strengthening economic and national security cooperation to enhance supply chain resilience and innovation.
In the coming weeks, they will negotiate and finalise the Agreement on Reciprocal Trade, prepare the agreement for signature, and undertake domestic formalities in advance of the agreement entering into force.
Last week, the US declared it would impose tariffs of up to 32% on goods from Indonesia./.
Reciprocal trade negotiations with US must ensure Vietnam's core interests: PM
The future tasks must ensure Vietnam's core interests while helping consolidate and strengthen the Vietnam-US Comprehensive Strategic Partnership, bringing benefits to both countries and their consumers, and contributing to peace, stability, cooperation, and development in the region and the world, PM Chinh said.
