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Media reports maintained this, adding discussions on preferential trade agreement (PTA) have already commenced, focusing on the work plan and draft agreement text, with further substantive chapters to be addressed in subsequent rounds.
According to a statement from the Indonesian Trade Ministry, both countries are striving to conclude negotiations by the end of 2024, with a signing target set for March 2025. The second round of talks is slated for June 19-20 in Colombo, concentrating on the agreement’s text concept and market access.
Deputy Trade Minister of Indonesia Jerry Sambuaga highlighted that the PTA serves as a precursor to a broader free trade agreement (FTA), aiming to eventually eliminate tariffs across various goods even as the PTA launch ceremony emphasised its significance as a stepping stone toward deeper economic integration.
Indonesia foresees enhanced access for key exports like palm oil, paper, and fatty acids in the Sri Lankan market through the PTA. Bilateral trade data indicates a positive trend, with trade valued at $369.7 million in 2023, marking a 17.61 per cent increase from the previous year.
Indonesia has consistently maintained a surplus with Sri Lanka over the past five years, with a surplus of $283.5 million recorded in 2023.
The bilateral trade portfolio includes Indonesian exports of petroleum, paper, cartons, tobacco, and coal to Sri Lanka, while knitted fabrics and tobacco processing machines are among Indonesia’s top imports from the South Asian nation, as per the Trade Ministry’s data.
Fibre2Fashion News Desk (DR)