Vision Group Report: Invigorating the Indonesia-EU Partnership

More documents

Recommendations

Info

In the last decade, the expansion of international trade in fishery products has exceeded the growth in total fish production in the world. This rapid expansion reflects the large increase in consumption of marine products in the EU and US markets as well as many other regions in the world. Among these fast-growing markets, the European Union is not only the world’s largest market (accounting for 25 percent of the world’s total imports), but it is among the fastest growing markets for high-value imports like shrimp, tuna, bass and bream. The prospects for these markets continue to be favorable. Overall, the outlook for the global fishery market is robust, and EU fish imports are expected to grow by 8 percent annually in the medium-term. There is considerable scope for Indonesia to increase the amount of fisheries that it exports to the EU market. Indonesia accounted for only 1.4 percent of total EU imports from third countries in 2010. If it were to expand its share of exports to the EU market to the same proportion as the European Union’s share of world imports, Indonesia’s foreign exchange revenue from its fishery exports would more than double. For Indonesia, the rapid expansion of the global fishery market and the European Union’s strong market for high-value imports offers a number of excellent opportunities. 84 XVI FISHERIES • Indonesia has a cost advantage in its proximity to large marine and fishery resources and its abundant labor supply, which helps to offset shipping costs to the EU market. • Indonesia’s fishery industry has the chance to reverse the EU market share losses it suffered in the last decade because of external competition from large exporters like Ecuador and China, as well as the internal inertia in addressing testing and accreditation hindrances and trade impediment. • Secondly, Indonesia’s exports could be increased in terms of traditional exports and diversified into various other fish species and processed products that are in high demand abroad, for example, the main exports from aquaculture are shrimp (unfrozen, frozen and canned), crabs (unfrozen, frozen and canned), frog legs (fresh or chilled), ornamental fish (freshwater and mariculture), mollusks (scallops and snails), including capture products like tuna, jelly fish and coral fish as well as fish fat and oil and shrimp crackers. • A third opportunity lies in aquaculture growth and development, where opportunities exist for communitybased economic activities and rural development, along with greater foreign exchange earnings from exported aquaculture products. Given that two-thirds of Indonesia’s territory consists of marine and inland waters with an abundance of natural resources, the development of aquaculture and sustainable capture fisheries has the potential to make the fisheries industry a leading engines of growth and development for the country. The fishery market is highly price competitive, and some countries have a competitive advantage because of preferential tariff rates under free trade arrangements (FTAs) with the European Union, like those under the unilateral instrument of GSP plus, or the Everything But Arms (EBA) arrangement that include duty-free and quota-free access for products originating in Least Developed Countries (LDCs). Indonesia is a GSP beneficiary with preferential duties on fisheries. For EU fishery imports, the average MFN tariff rate is 10.8 percent, with a range of 0 to 23 percent; the average GSP rate is 7.1 percent, with a range from 0 to 19.5 in the case of some products like fresh, chilled or frozen sardines, some tunas like long-finned and yellow-fin tuna, and skipjack or stripe-bellied bonito. For crustaceans, an ad valorem tariff of 11.1 percent applies to third countries, with a range of 6 to 18 percent; the preferential tariff rate for GSP recipient countries is 5.1 percent, with a range of 2.1 to 14.6 percent. Between 2003 and 2008, Indonesia was the beneficiary of an annual tariff quota of 2,832.5 tons of canned tuna exports to the European Union. The duty applicable was 12 percent. Since 2009, the applicable tariff has reverted to that of the most-favored nation (MFN) at a rate of 20.5.
The Ministry of Marine Affairs and Fishery (MMAF) has been appointed by the European Union as the Competent Authority for fishery products in Indonesia. The efforts of the MMAF in recent years to improve the quality relevant elements have been very successful and have lead to a drastic reduction in the number of rapid alerts issued by the European Union. 400 350 300 250 200 150 100 50 0 Source: Eurostat. Fisheries 2001 2003 2005 2007 2009 Indonesia's export to the EU, mln USD Indonesia's import from the EU, mln USD Indonesia's share in the EU imports, % 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Indonesia's fisheries exports to the EU 35% 17% 48% Fresh, chilled or frozen fish Crustaceans, molluscs Prepared fish, crustaceans, molluscs 85
Page 1 and 2:
Invigorating The Indonesia-EU Partn
Page 3:
Abbreviations ACP Africa, Caribbean
Page 6 and 7:
SUMMARY OF THE TERMS OF REFERENCE F
Page 9 and 10:
CONCLUSIONS AND RECOMMENDATIONS 7
Page 11 and 12:
often be accentuated by the combina
Page 13:
20. Furthermore, in order to increa
Page 16 and 17:
Relations between Indonesia and the
Page 18 and 19:
eaching almost 7% in the last quart
Page 20 and 21:
The existing EU and Indonesia allia
Page 22 and 23:
Architecture of the CEPA 20 4 The V
Page 24 and 25:
Market Access in Goods 22 5
Page 26 and 27:
24 Members have an effective opport
Page 28 and 29:
Services are of increasing importan
Page 30 and 31:
manufacturing and services (banking
Page 32 and 33:
trade will bring to bear considerab
Page 34 and 35:
poor management 5 . As a result the
Page 36 and 37: Competition policy is a necessary m
Page 38 and 39: increasingly demanding “environme
Page 40 and 41: 38 14 Communication strategy
Page 43 and 44: PRODUCT SECTORS OF SPECIAL IMPORTAN
Page 45 and 46: are concerns in Indonesia over poss
Page 47 and 48: nature of complex and fairly aggreg
Page 49 and 50: to exploit potentially beneficial c
Page 51 and 52: In the political cooperation area,
Page 55 and 56: BACKGROUND NOTES 53
Page 57 and 58: 2. DEVELOPMENTS Even though the tra
Page 59 and 60: 1. to complete its ambitious negoti
Page 61 and 62: Data collected from an investment s
Page 63 and 64: direct recourse to international ar
Page 65 and 66: 2.2. EU Member States EU Member Sta
Page 67 and 68: - Component 2 (implemented by UNICE
Page 69 and 70: 7. Indonesia to improve the investm
Page 71 and 72: Indonesia is the largest timber exp
Page 73 and 74: 3. TECHNICAL COOPERATION The REACH
Page 75 and 76: The implementation of National Indo
Page 77 and 78: Cooperation and coordination betwee
Page 79 and 80: The proposal also puts forward a ne
Page 81 and 82: The EU’s objectives are to secure
Page 84 and 85: 82 1. INTRODUCTION Indonesia and th
Page 88 and 89: Indonesia’s automotives industry
Page 90 and 91: 88 Rapidly expanding services secto
Page 92 and 93: There is remarkable scope for coope
Page 94 and 95: In Indonesia the processed foods in
Page 96 and 97: Electronics is Indonesia’s larges
Page 98 and 99: One of the fastest growing segments
Page 100 and 101: The textile, clothing and footwear
Page 102 and 103: 100
Page 104: Delegation of the European Union In
show all

Vision Group Report: Invigorating the Indonesia-EU Partnership

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?