Indonesia Latest Asian Nation to Discuss EAEU Free Trade
Indonesia has requested to open negotiations for a Free Trade Agreement (FTA) with the Eurasian Economic Union, Russian Foreign Minister Sergey Lavrov said this week. Speaking in the follow-up to the negotiations with his Indonesian counterpart, Retno Marsudi, Lavrov said that the proposal on creating an EAUE-Indonesia free trade zone is under consideration. “Indonesia shows interest in starting negotiations on creating a free trade zone with this union [EAEU]. The relevant proposal has been introduced and is now being considered. Russia backs it.”
The Eurasian Economic Union is a Russia-led bloc, comprising Russia, Kyrgyzstan, Kazakhstan, Belarus, and Armenia, and is aimed at developing intra-regional economic ties and establishing the free flow of goods among its members. Lavrov also discussed with Marsuri the idea of extending EAEU contacts by engaging the union in events conducted by Asia-Pacific Economic Cooperation (APEC) member states. Indonesia offered to establish a group dedicated to examining the feasibility of a free trade deal.
Indonesia is a member of ASEAN, a free trade bloc that also includes the South-East Asian nations of Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Vietnam already has an FTA with the EAEU while Singapore is having its application fast tracked, the latter expecting to enter into an FTA with the EAEU in 2018. The ASEAN bloc has FTAs in place with China, India, Japan, South Korea, Australia, and New Zealand.
The EAEU effectively provides a free trade geographic space between China and the EU with implications for trade with both markets.
Russia Briefing is written and produced by Dezan Shira & Associates. The firm provides Russian and international businesses and governments with strategic, legal, tax and operational advisory services to SMEs and MNCs investing throughout Russia and Asia. We maintain 28 offices across China, India and the ASEAN nations, including Jakarta in addition to St. Petersburg and Moscow. Please contact the firm at email@example.com or firstname.lastname@example.org or visit our practice at www.dezshira.com
Dezan Shira & Associates´ Russian investment brochure offers an overview of the services provided by the firm – both foreign investment into Russia and Russian investment into Asia. It is Dezan Shira´s mission to guide investors through Russia´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the region.
In this issue of Russia Briefing, we explain the basics of business set up for foreign investors, from trademark registration, representation, trading mechanisms, and manufacturing. With low corporate tax rates, Russia is set to become the most dynamic of the trade corridors opening up to Asia.
Indonesia stands out in the ASEAN region for its competitive wages, large labor pool, and burgeoning domestic market. With a population exceeding 250 million, the country is poised to become an immensely lucrative market as it develops further and the urban consumption class continues to grow. In this inaugural issue of Indonesia Briefing magazine, we examine these trends, and highlight how Indonesia has made enormous strides in streamlining and liberalizing its business environment in order to capture larger inflows of foreign direct investment (FDI).