US Hopes Obama Trip Will Boost Trade with Indonesia

March 18, 2010 by · Leave a Comment 

By Doug Palmer

2010-03-16T103621Z_11355208_GM1E63G1FMP01_RTRMADP_3_INDONESIA

Barack Obama’s impersonator Ilham Anas of Indonesia poses in front of an image of U.S. President Barack Obama after being interviewed by Reuters TV in Obama’s former school, State Elementary School 01 Menteng, in Jakarta March 16, 2010. Obama is scheduled later this month to visit the world’s most populous Muslim nation, where he is a popular figure. Obama studied at State Elementary School 01 Menteng from 1970-1971.

REUTERS/Dadang Tri

WASHINGTON (Reuters) – The United States hopes President Barack Obama’s visit next week to Indonesia will help spur reforms that boost trade with Southeast Asia’s largest economy and the world’s fourth most populous nation.

“Economic nationalism, regulatory uncertainty and unresolved investment disputes give pause to American companies seeking to do business in Indonesia,” U.S. Secretary of Commerce Gary Locke said in a speech on Wednesday.

To increase trade, “it’s incumbent upon Indonesia to make market-oriented reforms that will make it a more attractive market, not just for U.S. companies but companies all around the world,” Locke said.

“Growing trade with Indonesia is a piece of the president’s broader plan to create jobs here at home by growing market access overseas.”

Obama is returning to the country where he spent part of his youth for talks in Jakarta with President Susilo Bambang Yudhoyono and a stop in Bali to meet civil society groups and urge further progress on democracy.

Indonesia — a majority Muslim nation of 230 million people — and the United States are expected to sign a “comprehensive partnership” agreement, which Locke said would be a “blueprint for cooperation on a whole host of issues.”

Two-way trade between the United States and Indonesia was just $18 billion last year, a tiny chunk of the $788 billion in trade the United States did with all Pacific Rim countries in 2009.

“In fact, Indonesia does less trade with the United States than some of its smaller, less populous ASEAN (Association of Southeast Asian Nations) neighbors like Singapore, Malaysia and Thailand,” said Locke, who will be leading a clean energy trade mission to Indonesia in May.

The United States exported $5.1 billion of goods last year to Indonesia, led by civilian aircraft and farm goods such as soybeans, animal feeds and cotton.

U.S. imports from Indonesia were just $12.9 billion last year, included clothing and textile goods, furniture, electronics, computer accessories and coffee.

Chinese Premier Wen Jiabao will visit Indonesia just weeks after Obama but Locke downplayed the idea that the back-to-back trips were a demonstration of Washington and Beijing vying for influence.

“I don’t think these visits in any way were set up to compete against each other,” Locke said.

But Ernie Bower, director for Southeast Asia at the Center for Strategic and International Studies, said he did see a healthy competition between the United States and China for “hearts, minds and markets” in Southeast Asia.

China “really picked up its game” in Indonesia with help it provided during the Asian financial crisis in the late 1990s and Obama’s trip helps set the stage for more U.S. involvement in a strategically important region, Bower said.

But Indonesia has a long way to go before it is ready to join a proposed regional free trade agreement with the United States, said Mark Orgill, manager for Indonesia at the U.S.-ASEAN Business Council.

A much less ambitious trade deal between ASEAN and China already has raised concerns among Indonesia’s manufacturers, Orgill said.

The United States began talks this week on the proposed Transpacific Partnership pact with Australia, Chile, Singapore, New Zealand, Peru, Vietnam and Brunei. Two other ASEAN countries, Malaysia and Thailand, have expressed interest in joining the talks.

“Indonesia fights battles at home” over moves to open its market, Orgill said.

Editing by John O’Callaghan

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U.S., Turkey Launch New Trade, Investment Forum

December 10, 2009 by · Leave a Comment 

WASHINGTON (Reuters) – The United States and NATO ally Turkey launched an initiative Monday aimed at boosting trade and investment ties, but said there were no plans for the two countries to negotiate a free trade agreement.

“We can … build on what is a good trade and commercial relationship and make it a much more robust one,’’ U.S. Trade Representative Ron Kirk said at a press conference with Turkish Deputy Prime Minister Ali Babacan.

The initiative creates a new Cabinet-level forum to discuss ways to expand bilateral trade and investment flows and to try to resolve disputes when they arise, similar to one the United States has with China.

“This framework … will be an important vehicle for expanding trade and investment and creating new jobs for the workers and the people’’ of both countries, said U.S. Commerce Secretary Gary Locke.

The announcement followed a White House meeting between President Barack Obama and Turkish Prime Minister Tayyip Erdogan to discuss Iran’s nuclear program and U.S. plans to send more troops to Afghanistan.

Obama told reporters he believed Turkey, a predominantly Muslim country and long-time U.S. ally, could be an “important player’’ in moving Iran toward resolving its dispute with the West over its nuclear program.

Erdogan said Turkey stands ready to do whatever it can to achieve a diplomatic solution on the nuclear issue.

Turkey, which has applied for membership of the European Union, is the United States’ fourth-largest trading partner in the Muslim world and 27th overall.

U.S-Turkey trade has dropped from a record of nearly $15 billion in 2008, but there is every reason to expect the two countries can surpass that “when the world economy gets back on its feet,’’ Locke said.

Babacan said the two countries would seek suggestions from business on how to increase trade in areas ranging from energy to agriculture to military equipment.
He downplayed the chances of Ankara using the forum to press Washington to reduce high U.S. tariffs that Turkey faces on textiles and some other exports.

Kirk said the initiative was not intended as a stepping stone to talks with Turkey on a free trade agreement. (Reporting by Doug Palmer; Editing by Chris Wilson)

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