Beleid was released as part of the process of ratifying the Asean-Hong Kong Free Trade Agreement, in accordance with Presidential Decree 34/2020. This agreement also complements the list of free trade agreements owned by the Indonesian government. In the meantime, trade diversion is the transition of imports from one country to another. Trade diversion is generally done because, from an economic point of view, the transition is seen as more efficient or cost-effective. Melansir Definition of the official website of the Ministry of Commerce of the Republic of Indonesia Free Trade Agreement (FTA) is an agreement between two or more countries to form a free trade area. A free trade agreement is an international agreement between two or more countries to reduce or remove trade barriers and achieve closer economic integration. What is a free trade agreement? Among the benefits of the BENEFITS FTA that can be obtained from the free trade agreement are the emergence of the creation of trade and the diversion of trade. The creation of businesses is the creation of trade transactions between FTA members that have never taken place before, thanks to incentives arising from the formation of free trade agreements. At that time, Malaysian farmers were receiving subsidies to produce grain and sell it at affordable prices. Crops from outside the country are subject to import duties to protect farmers from loss. Under the free trade agreement, farmers will lose extra-state harvesting rights. Malaysia is overwhelmed by very cheap YIELDs of ERNTE in the United States compared to Malaysian crop prices. Malaysian farmers will suffer heavy losses and will no longer be able to build an additional farm.
The United States uses high technology and subsidizes its farms. Therefore, local crop prices should not compete with the prices of very cheap U.S. plants price pressure are also exerted by the World Bank, the International Financial Fund (IMF) and the two-way agreement with the United States. Beginning in June 2006, U.S. Trade Representative Susan Schwab discussed the free trade agreement with the Malaysian government. Malaysia is the 10th largest trading partner of the United States with $44 billion in two parts in 2005. Malaysian trade analysts predict that U.S. exports to Malaysia will double with taxes, tariffs, subsidies, etc. Subsidies for local feed in the United States lead to excessive livestock expenditures. The average farmer in the United States does not have one. The subsidies collected are taxed on the price of the property they consent to. In the long run, American farmers and farmers are also perplexed.
By the regulation of The Minister of Finance 79/PMK.010/2020, adopted on 3 July 2020, the government has set the import duty rate under the Asean-Hong Kong Free Trade Agreement (AHKFTA). Under the free trade agreement with the United States, service sectors such as water, electricity, telecommunications, transportation can be taken over by foreign companies and be profitable, resulting in higher prices for services. For example, rice-emitting plants require electrical processing services, transportation services and highways to transport goods. If the cost of services increases, the price of rice will also rise. In addition to the negotiations on the Trans-Pacific Agreement (TPP) concluded on 5 October 2015, Malaysia is also negotiating the following free trade agreement: the trade agreements already implemented are innumerable.