The Borneo Post

Australia insists trade agreement with Indonesia on track despite Israel comments

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SYDNEY: Australian Prime Minister Scott Morrison said yesterday a billion- dollar free trade agreement with Indonesia will be signed this year despite a furious reaction to Canberra’s potential move to recognise Jerusalem as Israel’s capital.

Morrison said on Tuesday he was open to moving Australia’s mission to Jerusalem from Tel Aviv.

His willingnes­s to reverse decades of foreign policy and follow the lead of the United States alienated many of Australia’s Asian neighbours that have close alliances with Palestinia­ns.

Morrison, who faces a critical by- election on Saturday that will determine whether his government keeps its one- seat majority, said his government had been assured Indonesia would honour its commitment to the deal worth more than A$ 16 billion ( US$ 11.4 billion).

“There’s been direct communicat­ion between myself and the president (of Indonesia) as well as between our foreign ministers and with the trade ministers,” Morrison told reporters in Canberra.

“The Indonesian trade minister has made it very clear on the public record that is not an issue of concern to them,” he said.

The agreement, which has been in the works for nearly a decade, offers Australia a chance to boost rural exports, which dominates two-way trade.

Indonesia, the world’s biggest Muslim-majority country and a major buyer of wheat and beef, bought more than A$ 3 billion of Australian agricultur­al commoditie­s in 2017, according to government data.

Fiona Simson, president of Australia’s National Farmers Federation, which represents the rural sector, cautioned Morrison on Wednesday against any move that would threaten exports.

While threatenin­g to anger rural voters, Morrison’s potential policy shift could help his government retain its one- seat parliament­ary majority.

Voters in the Sydney harboursid­e electorate of Wentworth will decide on Saturday who will replace former prime minister Malcolm Turnbull, who quit politics after he was ousted in a party-room revolt in August.

Wentworth, an affluent and diverse constituen­cy, is home to a large Jewish community.

Census figures show 12.5 per cent of people in Wentworth are Jewish, a significan­tly larger proportion than elsewhere in Australia.

The status of Jerusalem is one of the thorniest obstacles to a peace deal between Israel and the Palestinia­ns. — Reuters

 ??  ?? A Hebrew and English sign is seen at the entrance to the Australian Embassy in Tel Aviv, Israel.— Reuters photo
A Hebrew and English sign is seen at the entrance to the Australian Embassy in Tel Aviv, Israel.— Reuters photo

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