Overall, these agreements mean that, according to the government, about half of the goods that arrive in the United States are duty-free. The average import duty on industrial goods is 2%. Among the advantages of the free trade agreement are the emergence of trade creations and trade diversions. The creation of commercial transactions between FTA members, which have never taken place before, due to incentives arising from the creation of a free trade agreement. The official website of the Ministry of Commerce of the Republic of Indonesia (FTA) is an agreement between two or more countries for the creation of a free trade area. “But that`s the actual simulation base is still very basic, which means conservative, and if it can give the best effort, for example, more than 0.05%,” Fithra said by phone (16/11). In the modern world, free trade policy is often implemented with the formal and reciprocal agreement of the countries concerned. Simply put, free trade policy can be interpreted without trade restrictions. What exactly is meant by a free trade agreement? “Because Indonesia and Japan, Indonesia and Korea have already concluded trade agreements, i.e.
tariffs on goods from Indonesia to Korea and Japan 0. Jemmy Kartika, president of the Indonesian Textile Association (API), said Indonesia would likely lose the Japanese and South Korean markets, with the removal of trade barriers with China through the RCEP agreement. The decree was issued following the ratification of the ASEAN-Hong Kong Free Trade Agreement, in accordance with Presidential Regulation No. 34/2020. This agreement also completes the list of free trade agreements held by the Indonesian government.