(Ecofin Agency) - Mozambique and Indonesia signed a new preferential trade agreement (PTA) to lower their tariff barriers, the Indonesian Ministry of Trade announced this week.

They want to boost their trade relations by reducing tariffs on many products traded between the two economies. For example, Mozambique is expected to lower import tariffs on 217 Indonesian products including palm oil, margarine, rubber and fruit. In exchange, Indonesia will reduce tariffs on 242 products, including cotton, tobacco and nuts from Maputo.

“With this Indonesian-Mozambique PTA, both countries will be more open, trade will increase because tariffs are better than before,” said Indonesian Trade Minister Enggartiasto Lukita. He stressed that his country wants to diversify and intensify its trade with Africa.

Last year, total trade between the two countries reached $91.88 million, with a surplus of $30.9 million for Indonesia.

Moutiou Adjibi Nourou