Technical Assistance II
In a bid to further trade negotiations and address Non-Tariff Measures (NTMs), the Ministry of Trade (MoT), in partnership with ARISE+ Indonesia, has rolled out the second series of capacity-building initiatives. These activities aim to enhance the expertise of trade negotiators and analysts in Non-Tariff Measures (NTMs), a pivotal area in the ongoing negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA). The launch meetings, spanning 8 and 11 August 2023, brought together ARISE+ Indonesia and the Directorate of World Trade Organisation Negotiation from the Ministry of Trade to discuss comprehensive project planning, foreseen outcomes, MoT's requirements and expectations, logistics, and more. ARISE+ Indonesia Trade and Investment Senior Expert Widdi Mugijayani coordinated these activities with delivery support from the International Economics Consulting (IEC) under the leadership of Paul Baker. The program implementation will run from August 2023 to March 2024.
The meetings addressed three activities supported by ARISE+ Indonesia. The first NTM intervention focuses on developing a framework to address foreign Non-Tariff Barriers impeding Indonesian companies. This initiative seeks to fully harness Indonesia's trade potential, building upon the NTM reporting mechanism and institutional framework established last year.
Francisca Simanjuntak, Acting Director of the World Trade Organisation Negotiation, pinpointed the rise of globally enforced NTMs, highlighting their challenges, especially for SMEs in developing countries. "To optimise Indonesia's trade potential, we need a proactive framework addressing foreign Non-Tariff Barriers (NTBs) encountered by our businesses. This would mitigate informational hurdles and amplify our trade footprint," Ms Francisca underscored.
The framework will be developed using case studies from successful databases that address barriers to NTMs in third-country markets. Data collection will leverage the extensive network of Indonesian trade attachés and Trade Promotion Centers (ITPCs) worldwide. After finalizing the framework, a tailored training workshop will be organized to prepare trade representatives for its practical application. In addition, a user-friendly online platform for the NTMs monitoring system will also be developed.
Another vital NTM activity entails piloting a framework for notifying the WTO about import licensing requirements. This activity aims to enhance the understanding within line ministries, including the MoT, regarding the significance, process, and conditions for notifying, the objectives and reasons for licensing requirements, the procedures to obtain the licenses, and the agencies involved.
Highlighting the existing discrepancies in the WTO's database, Ms Franciska underlined, "Capacity-building is pivotal to fulfil our WTO notification obligations on import licensing, ensuring a solid foundation for Indonesia to meet these mandates."
To this end, a Training Needs Assessment (TNA) will be distributed, identifying the requisite governmental training needs. Follow-up workshops will spotlight the challenges and seek resolution.
ARISE+ Indonesia will also assist the Ministry of Trade in enhancing the expertise of its officials in areas related to Non-Tariff Measures (NTMs), Trade Reform, and Sustainability. The six agreed-upon topics are Digitalisation and Trade, Fisheries Subsidy and Trade, WTO Reform, MSMEs (Micro, Small, and Medium Enterprises) and Trade, Environment and Trade, and Reviving the Agriculture Negotiation in the WTO.
A series of workshops will be organised, each supplemented by concept notes to gather insights and perspectives from international trade practitioners and highlight international best practices. Additionally, participants will be provided with a list of recommended literature to further deepen their understanding in these areas.
Alessandro Martinatto, ARISE+ Indonesia's TA II Team Leader, emphasized that the capacity-building efforts supporting the Ministry of Trade align with one of the objectives of ARISE+ Indonesia. This objective aims to enhance trade-related competencies for negotiating (and subsequently implementing) the EU-Indonesia CEPA and strengthening the understanding and implementation of obligations under WTO Agreements.
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