Committee on Regional Trade Agreements - Notification of regional trade agreement - Mozambique and Indonesia

NOTIFICATION of regional trade agreement

1.

Member(s) notifying: Mozambique

2.

Date of notification: 19 November 2023

3.

Notification pursuant to

[X] Article XXIV:7(a) of GATT 1994

[ ] Article V:7(a) of GATS

[ ] Paragraph 4(a) of the Enabling Clause

4.

Parties to the Agreement: Mozambique and Indonesia

5.

Date of signature: 27 August 2019

6.

Date(s) of entry into Force: 06 June 2022

7.

Brief description of the Agreement:

PREFERENTIAL TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF MOZAMBIQUE AND THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

Context

With a view to increasing investment and bilateral trade, the parties decided in 2018 to negotiate a Preferential Trade Agreement, which is not restricted to the simple negotiation of reductions or elimination of import tariffs, but also includes various aspects related to international trade, such as technical barriers to trade, Sanitary and Phytosanitary Measures (SPS), Customs Cooperation, Trade Facilitation.

General lines of the Preferential Trade Agreement

The Agreement aims to strengthen commercial relations between the Parties and constitutes a legal instrument compatible with the rules of the World Trade Organization that will regulate commercial relations between Mozambique and Indonesia. It has an indefinite term, and with periodic review, which offers potential investors long-term stability for the Agreement providing: Simple rules of origin; Trade defense and economic protection mechanisms, such as anti-dumping and compensatory and safeguard measures to protect local products; Sanitary and Phytosanitary Measures; Technical barriers to trade; Customs cooperation and trade facilitation, and establishment of a Joint Committee, whose main function is to guarantee the implementation of the aforementioned Agreement.

Gains for Mozambique: The Agreement guarantees access for Mozambican exports to the Indonesian market at reduced customs rates; contributes to making Mozambique more attractive to Indonesian investment (agro-industrial and textile sectors); creation of new sources of internal revenue, resulting from new investments; Greater opportunities for technology transfer to Mozambique resulting from the mobility of qualified people, particularly in the areas of agribusiness, textile and clothing industries.

8.

Text and related schedules, annexes and protocols are:

[X] submitted to the WTO Secretariat (electronic format)

[] available from the following official Internet link(s):