Trade officials from The United States and Indonesian met several times in 2006 to discuss the range of outstanding issues affecting the U.S.-Indonesian economic relationship and to negotiate and sign several agreements. 

In September 2006, the United States and Indonesia signed an agreement to cooperate on efforts to prevent illegal transshipments of textiles and apparel through Indonesia to the United States.  This agreement will combat illegal transshipments of textiles and apparel and facilitate trade by helping both governments better distinguish between legitimate transactions and shipments that circumvent trade rules and procedures. 

In November 2006, the United States and Indonesia signed a landmark agreement on combating illegal logging and associated trade, the first of its kind for both countries.  The agreement is designed to promote forest conservation by combating illegal logging and associated trade, and to help ensure that Indonesia’s legally-produced timber and wood products continue to have access to markets in the United States and elsewhere. 

In November 2006, the United States also announced its decision to improve Indonesia’s standing on the Special 301 Watch List after completion of a review that examined the adequacy and effectiveness of intellectual property rights (IPR) protection in Indonesia.  The review concluded that Indonesia had bolstered efforts to stop illegal production and sales of pirated optical discs by controlling the licensing of factories and conducting raids against pirate optical disc factories and on retail outlets selling pirated goods.  While recognizing the progress Indonesia has made, the U.S. Government review also concluded that sustained efforts and continued progress on key IPR issues will be essential to avoid a future return to the Priority Watch List. 

Indonesia is the United States’ 31^st largest goods trading partner.