Indonesia is the largest Muslim country in the world. Would a free trade agreement (FTA) with the country be beneficial both economically and politically to the United States? What kind of benefit could Indonesia expect? This book presents a case for improved trade relations between Indonesia and the United States and recommends advancing exploratory talks toward a US-Indonesia FTA. The authors present a detailed study of the stakes involved in the various areas of the proposed negotiation and estimate the FTA's potential for trade creation, trade diversion, and welfare under different scenarios.
Selected chapters and sections are provided for preview only.
2. Natural Resources
3. Manufactures Trade
4. Labor and Environmental Issues in Indonesia
5. Government Procurement
7. Services Trade
8. Estimates from Gravity and Computable General Equilibrium Models Dean DeRosa and John P. Gilbert
Appendix A Technical Aspects of the Gravity and Computable General Equilibrium Models