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Japan, Indonesia trade deal takes effect
Tue, Jul 01, 2008
AFP

TOKYO - A FREE trade pact between Japan and Indonesia took effect on Tuesday, ending many tariffs and paving the way for Indonesian nurses to work full-time in Asia's largest economy, officials said.

Under the Indonesia-Japan Economic Partnership Agreement, Japan will accept nurses and health care workers from Indonesia to help ease a shortage of such staff here.

The move will mark the first time Japan has brought in foreign nurses and care workers on a full-time basis. Some have been working with trainee status.

The pact will scrap more than 90 per cent of Japan's tariffs on 9,275 items from Southeast Asia's largest economy.

The cuts are significant as Japan is Indonesia's biggest trading partner and one of its biggest investors. Tokyo has also offered a broad package of technical and other assistance as part of the deal.

Under the pact, the countries agreed to strengthen cooperation on energy and mineral resource security, a key issue for energy-hungry Japan. Natural gas, crude oil and coal account for about half of Japan's imports from Indonesia.

Japan has been seeking to conclude a flurry of bilateral pacts amid a breakdown in global trade negotiations.

It has reached trade deals with Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand as well as the Association of Southeast Asian Nations. -- AFP

 

 
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