The Indonesia-Australia comprehensive economic partnership agreement : consequential legal document?

The Indonesia – Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is an important bilateral document designed to consolidate and advance the Australia-Indonesia relationship. It has been heralded as a major trade agreement that will deepen business relationships and increase the flow of trade between Australia and Indonesia. This article tests the veracity of these claims and investigates the merits of this agreement. It considers the context in which the agreement was devised, alongside an analysis of its structure and substantive clauses. Our assessment is that the IA-CEPA does not create a significantly improved legal infrastructure for bilateral trade. Despite this finding, there are significant benefits that do emerge from the Agreement in relation to promoting business and social relationships. These emerge from the agreement’s symbolism, and some mechanisms in the IA-CEPA side agreements, particularly those that foster people-to-people engagement, which provides a platform for longer-term sustainable cross-border commercial relationships.