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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.
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>> In Brief
Contents
Preface
Acknowledgments
1. Introduction
2. Natural Resources
3. Manufactures Trade
4. Labor and Environmental Issues in Indonesia
5. Government Procurement
6. Investment and Intellectual Property Rights
7. Services Trade
8. Estimates from Gravity and Computable General Equilibrium Models
Dean DeRosa and John P. Gilbert
9. Conclusion
Appendix A Technical Aspects of the Gravity and Computable General Equilibrium Models
Glossary
References
Index
