Jakarta. Canada has given its green light to Indonesia’s membership in the CPTPP trading bloc, marking a progress for Jakarta’s plans to be part of the grouping that accounts for at least 13 percent of the global economy. 

The CPTPP -- short for Comprehensive and Progressive Agreement for Trans-Pacific Partnership -- is a free trade agreement that brings together Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, and Vietnam. The UK will become a full-fledged CPTPP member on Dec. 15.

Indonesia has already applied to join the CPTPP, just a month before Former President Joko “Jokowi” Widodo retired. His successor Prabowo Subianto has vowed to proceed with the application process. Visiting Canadian Trade Minister Mary Ng said Monday that Canada -- and the other CPTPP members -- were looking forward to having Indonesia in the group as long as Jakarta could meet the bloc’s high-standard rules.

“We take the decision [on new memberships] by consensus. … We welcome countries that can meet the high standards of the [CPTPP] agreement. … But we believe Indonesia is a good candidate,” Ng told reporters in Jakarta.

When asked whether Indonesia had set a deadline for its CPTPP bid, Trade Minister Budi Santoso only responded by saying that Jakarta was eyeing to be part of the bloc “as soon as possible”. 

“We have gained the support of many of the CPTPP members, including Canada. But I think everything related to our CPTPP membership is going well without a hitch. It is just a matter of time since we have earned everyone’s backing,” Budi said.

Like many free trade agreements, the CPTPP seeks to eliminate tariffs across all sectors, thus potentially enabling Jakarta to enjoy greater market access to the group's economies. Once fully implemented, 99 percent of the tariff lines among CPTPP members will be duty-free.

Indonesia is slated to ink a similar trade pact that will drastically ease barriers with Canada next year. The trade liberalization under this bilateral agreement will cover up to 90.5 percent of the import tariffs for its goods entering the Canadian market. Indonesia is banking on this comprehensive economic partnership agreement to cut down its trade deficit with Canada. 

The UK is set to be the CPTPP’s first-ever non-founding member. The UK will join the group after all its members and the newcomer complete their respective ratification processes. But the accession will still enter into force after 6 members and the UK ratify its membership. Japan, Singapore, Vietnam, New Zealand, Chile, and Peru have already ratified the UK’s entry so far. Other members are likely to follow suit next year. 

Add as a preferred source on Google +