The TIFA provides the two sides with a forum to identify, raise, and resolve matters that might otherwise hinder the development of bilateral trade and investment ties.
In their meeting, Ambassador Schwab, Trade Minister Pangestu and Vice President Kalla discussed issues on the U.S.–Indonesia bilateral trade agenda, including the enforcement of intellectual property rights (IPR), removal of barriers to exports of U.S. fruits to Indonesia, and reviving the World Trade Organization Doha Round.
Background
The United States is Indonesia's largest market for exports of textile and apparel products. In 2005, textile and apparel imports from Indonesia were valued at $3 billion, making Indonesia the United States' fifth largest textile and apparel supplier in value terms. The MOU will facilitate textiles and apparel trade by helping both governments better distinguish between legitimate transactions and shipments that circumvent trade rules and procedures.
The United States has previously concluded MOUs to combat illegal textile and apparel transshipments with the Philippines, Hong Kong and Macau, and is in the process of negotiating an MOU with Taiwan. These issues are also being addressed in the comprehensive bilateral free trade agreement negotiations that are ongoing with Korea and Malaysia.
United States Trade Representative