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.
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