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35-821: The Timor-Leste–Indonesia–Australia Growth Triangle ( TIA-GT ) is a combined initiative of the regions of Eastern Indonesia , Northern Australia , and the Democratic Republic of Timor-Leste . This initiative aims to promote and foster economic growth through integrated economic development in the region that these nations reside in. The growth triangle was created in 2012, after a meeting was held by Indonesian president Susilo Bambang Yudhoyono with Prime Minister of Australia Julia Gillard and Timor-Leste Prime Minister Xanana Gusmao . The initiative aims to support economic, social, and cultural development primarily by attracting investment, developing manufacturing industries, enhancing human capital, and overall building

70-590: A common commercial activity along the coasts of Eastern Indonesia; however, in the 2020s climate change in Indonesia has been causing seaweed farmers in Eastern Indonesia to lose revenue and harvests. In the consumer shopping industry, Eastern Indonesia experienced a rapid increase in online shopping in the 2020s, with overall transactions in the region doubling from 2020 to 2021; this growth has been led by Indonesian e-commerce company Tokopedia , with

105-525: A delay in tariff reductions. For sensitive agricultural products include commodities such as rice, ASEAN members have until 2010 to reduce the tariff levels to 0-5 %. General exceptions refer to products which an ASEAN member deems necessary for the protection of national security, public morals, the protection of human, animal or plant life and health, and protection of articles of artistic, historic, or archaeological value. ASEAN members have agreed to enact zero tariff rates on virtually all imports by 2010 for

140-567: A stronger cooperative relationship between the three countries involved. The initiative also aimed to accelerate the accession of Timor-Leste into the Association of Southeast Asian Nations (ASEAN) and to fulfill goals set by Timor-Leste's Strategic Development Plan, such as increasing the nation's economic prosperity and stability. The growth triangle is often misinterpreted as a free-trade zone; however, while there are elements of free trade agreements between Indonesia and Australia specifically,

175-710: A tariff rate of 0-5 %(the more recent members of Cambodia, Laos, Myanmar and Vietnam, also known as CMLV countries, were given additional time to implement the reduced tariff rates). This is known as the Common Effective Preferential Tariff (CEPT) scheme. ASEAN members have the option of excluding products from the CEPT in three cases: 1.) Temporary exclusions 2.) Sensitive agricultural products 3.) General exceptions. Temporary exclusions refer to products for which tariffs will ultimately be lowered to 0-5 %, but which are being protected temporarily by

210-488: A “Form D” certification from its national government attesting that the good has met the 40% requirement. The Form D must be presented to the customs authority of the importing government to qualify for the CEPT rate. Difficulties have sometimes arisen regarding the evidentiary proof to support the claim, as well as how ASEAN national customs authorities can verify Form D submissions. These difficulties arise because each ASEAN national customs authority interprets and implements

245-532: Is a regional intergovernmental organization connecting ten countries in Southeast Asia for mutual cooperation and the integration of each country's economy, politics, security, military, education, and culture. ASEAN's members include Malaysia , the Philippines , Singapore , Thailand , Brunei , Vietnam , Laos , Myanmar , Cambodia , and Indonesia . While Australia is not a member of ASEAN, it

280-585: Is one of the ASEAN Plus Six, which includes an additional six nations with strong economic, political, security, and socio-cultural presence both globally and within the Asia-Pacific . Other nations included in ASEAN Plus Six are China , Japan , South Korea , India , and New Zealand . Timor-Leste has submitted a membership application to ASEAN since March 2011; however, this accession has been declined every year since. Most recently in 2017, four of

315-798: The World Trade Organization (WTO). Australia also committed to assisting with the future application for Timor-Leste to join the Commonwealth of Nations . In August 2018, Australia and Indonesia renewed negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which includes deals between the nations relating to freeing trade, lowering tariffs, and instating certain tariff-free conditions for trade between Indonesia and Australia. The Association of Southeast Asian Nations (ASEAN)

350-540: The region’s competitive advantage as a production base geared for the world market . 1967 1976 1977 1987 1991 1992 1993 1995 1997 1999 Unlike the EU, AFTA does not apply a common external tariff on imported goods. Each ASEAN member may impose tariffs on goods entering from outside ASEAN based on its national schedules. However, for goods originating within ASEAN, ASEAN members are to apply

385-534: The AEC. Efforts to close the development gap and expand trade among members of ASEAN are key points of policy discussion. According to a 2008 research brief published by the World Bank as part of its Trade Costs and Facilitation Project , ASEAN members have the potential to reap significant benefits from investments in further trade facilitation reform, due to the comprehensive tariff reform already realised through

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420-716: The ASEAN Free Trade Agreement. This new analysis suggests examining two key areas, among others: port facilities and competitiveness in the Internet services sector. Reform in these areas, the report states, could expand ASEAN trade by up to 7.5% ($ 22 billion) and 5.7% ($ 17 billion), respectively. By contrast, cutting applied tariffs in all ASEAN members to the regional average in Southeast Asia would increase intra-regional trade by about 2% ($ 6.3 billion). Countries that agree to eliminate tariffs among themselves: Regular Observers The most recent ASEAN meeting

455-585: The ASEAN Secretariat's ability to ensure consistent application of AFTA measures. ASEAN national authorities have also been traditionally reluctant to share or cede sovereignty to authorities from other ASEAN members (although ASEAN trade ministries routinely make cross-border visits to conduct on-site inspections in anti-dumping investigations). Unlike the EU or NAFTA, joint teams to ensure compliance and investigate non-compliance have not been widely used. Instead, ASEAN national authorities must rely on

490-526: The Eastern regions of Indonesia. The Australian government cites benefits of diversifying the country's mining-based industry and bringing positive development to the Northern city of Darwin and surrounding areas. Timor-Leste sees the potential to become a manufacturing and logistic center for raw materials and semi-processed products of the surrounding Indonesian islands. All three countries understand

525-457: The Form D requirements without much co-ordination. Administration of AFTA is handled by the national customs and trade authorities in each ASEAN member. The ASEAN Secretariat has authority to monitor and ensure compliance with AFTA measures, but has no legal authority to enforce compliance. This has led to inconsistent rulings by ASEAN national authorities. The ASEAN Charter is intended to bolster

560-757: The Growth Triangle's formation, Australia, Timor-Leste, and Indonesia have all implemented several initiatives that bring benefits to members of the growth triangle. In September 2013, Timor-Leste launched a Mission Unit for the negotiation of a platform for cooperation in Timor-Leste, Indonesia, and Australia. In March 2016, representatives of all three countries met and discussed a "tourism path" between Bali and Darwin , which would lead through islands of Flores and Timor and bring an economic boost to all three nations. In July 2018, Australia expressed support for Timor-Leste's intentions to join both ASEAN and

595-621: The Northern Territory of Australia Paul Henderson expressed interest in being involved in this initiative. In January 2012, Australia and Indonesia organized a free trade zone within their territory as a result of an agreement among ASEAN , Australia, and New Zealand. In May 2012, a report to the Commonwealth Government of Australia highlighted the potential for cooperation between Australia, Timor-Leste, and Indonesia. The report particularly considered: Since

630-629: The Protocol, and often they seek dispute resolution in other fora such as the WTO or even the International Court of Justice. This can also be frustrating for companies affected by an AFTA dispute, as they have no rights to invoke dispute resolution yet their home ASEAN government may not be willing to invoke the Protocol. The ASEAN Secretary General has listed dispute resolution as requiring necessary reform for proper administration of AFTA and

665-561: The days are generally dry and sunny from October through March with the warm tropical rain season occurring between May and August; temperatures are typically in the 27 °C (81 °F) to 30 °C (86 °F) range throughout the year. Administratively, Eastern Indonesia consists of four main geographical units, namely the Lesser Sunda Islands , Sulawesi , Maluku Islands and Papua . 3,726 m (12,224 ft) 3,478 m (11,411 ft) Seaweed farming has traditionally been

700-544: The declaration of the Revolutionary Front for an Independent East Timor allowed Timor-Leste to gain its independence. Nine days later, Timor-Leste was invaded, occupied, and declared a province of Indonesia. Though relations between Australia and Indonesia were generally positive prior to this event, during the Indonesian occupation of Timor-Leste, Australian officials and the public expressed dissent against

735-597: The dispute. Panel decisions can be appealed to an appellate body formed by the ASEAN Economic Community Council. The Protocol has almost never been invoked because of the role of SEOM in the dispute resolution process. SEOM decisions require consensus among all ASEAN members, and since both the aggrieved party and the alleged transgressor are both participating in SEOM, such consensus cannot be achieved. This discourages ASEAN members from invoking

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770-515: The initiative to be mutually beneficial, as it links the infrastructure, capital, and expertise of Australia with the land, labor, and natural resources of Timor-Leste and the technology and labor resources of Indonesia, thereby ensuring that each country benefits from the arrangement. All three countries are located in the Asia Pacific region. Since the 16th century CE, Timor-Leste was subject to Portuguese colonization . On 28 November 1975,

805-621: The initiatives primarily involve infrastructure projects, trade, transport facilitation, and investment promotion and facilitation. Examples of other growth triangles and areas that have been formed include: Eastern Indonesia Eastern Indonesia borders Southern Philippines in the Northwest, Palau in the North, Papua New Guinea in the East, and Northern Australia in the South. During

840-736: The largest and most important free trade areas (FTA) in the world, and together with its network of dialogue partners, drove some of the world's largest multilateral forums and blocs, including Asia-Pacific Economic Cooperation , East Asia Summit and Regional Comprehensive Economic Partnership . The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei , Indonesia , Malaysia , Philippines , Singapore and Thailand . Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises

875-627: The last stages of the Dutch colonial era, the area east of Java and Kalimantan was known as the Great East and later known as Eastern Indonesia . After Denpasar Conference , on 24 December 1946, the State of East Indonesia was formed covering the same area, excluding Western New Guinea , previously included during Malino Conference . It was a component of the United States of Indonesia , and

910-483: The occupation. In 1999, Timor-Leste created an act of self-determination; this was sponsored by the United Nations , which recognized Timor-Leste as an independent sovereign state . Australia was involved in the subsequent stabilization of Timor-Leste, including leading a multi-national peacekeeping force in this time. Australia continues to be a major supporter for Timor-Leste. However, relations have worsened in

945-510: The original member nations of ASEAN accepted the application of Timor-Leste, but the other six declined. The concept of the Growth Triangle was inspired by the success of other cooperative initiatives among countries in Southeast Asia and Oceania . These sub-regional initiatives usually focus on less developed countries that have less-developed infrastructure and intra-regional connectivity. Hence, most projects planned and approved by

980-575: The original signatories, and 2015 for the CMLV countries. The CEPT only applies to goods originating within ASEAN. The general rule is that local ASEAN content must be at least 40% of the FOB value of the good. The local ASEAN content can be cumulative, that is, the value of inputs from various ASEAN members can be combined to meet the 40% requirement. The following formula is applied: However, for certain products, special rules apply: The exporter must obtain

1015-552: The review and analysis of other ASEAN national authorities to determine if AFTA measures such as rule of origin are being followed. Disagreements may result between the national authorities. Again, the ASEAN Secretariat may help mediate a dispute but has no legal authority to resolve it. ASEAN has attempted to improve customs co-ordination through the implementation of the ASEAN Single window project. The ASEAN Single Window would allow importers to submit all information related to

1050-403: The ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement to join ASEAN, but were given longer time frames in which to meet AFTA's tariff reduction obligations. The primary goals of AFTA seek to: The primary mechanism for achieving such goals is the Common Effective Preferential Tariff scheme, which established a phased schedule in 1992 with the goal to increase

1085-460: The terms of the growth triangle initiative are not directly linked to these free trade agreements, and the goals of the growth triangle do not specifically encompass free trade between the three nations. The Growth Triangle developed as a result of each country recognizing varied benefits for involvement in a combined initiative. The Indonesian government believes that the initiative would provide an opportunity to develop and economically strengthen

Timor Leste–Indonesia–Australia Growth Triangle - Misplaced Pages Continue

1120-603: The top product types sold in the region being health and beauty, fashion, food and beverage, and electronics. The following are the four largest cities in Eastern Indonesia by population: This Indonesia -related article is a stub . You can help Misplaced Pages by expanding it . ASEAN Free Trade Area The ASEAN Free Trade Area ( AFTA ) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies. It stands as one of

1155-757: The transaction to be entered electronically once. This information would then be shared with all other ASEAN national customs authorities. Although these ASEAN national customs and trade authorities co-ordinate among themselves, disputes can arise. The ASEAN Secretariat has no legal authority to resolve such disputes, so disputes are resolved bilaterally through informal means or through dispute resolution. An ASEAN Protocol on Enhanced Dispute Settlement Mechanism governs formal dispute resolution in AFTA and other aspects of ASEAN. ASEAN members may seek mediation and good offices consultations. If these efforts are ineffective, they may ask SEOM (Senior Economic Officials Meetings) to establish panel of independent arbitrators to review

1190-500: The wake of the Australia–East Timor spying scandal . The Growth Triangle has been the result of numerous meetings and negotiations between the three nations. The Minister of Economy and Development of Timor-Leste, João Gonçalves, proposed the growth triangle to President of Indonesia Susilo Bambang Yudhoyono as a project to support the economies and institutions of the involved nations. In April 2011, former Chief Minister of

1225-436: Was dissolved into the unitary Republic of Indonesia in 17 August 1950. Currently, Eastern Indonesia consists of 17 provinces: Bali , East Nusa Tenggara , West Nusa Tenggara , Central Sulawesi , Gorontalo , North Sulawesi , South Sulawesi , Southeast Sulawesi , West Sulawesi , Maluku , North Maluku , Central Papua , Highland Papua , Papua , South Papua , Southwest Papua , and West Papua . In Eastern Indonesia,

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