US Trade Representative Jamieson Greer is set to speak with a top Indonesian official this week in hopes of salvaging a trade framework at risk of collapsing, the Financial Times reported on Tuesday.
Greer will speak to Airlangga Hartarto, the Indonesian coordinating minister for economic affairs, in an effort to revive a deal struck in July that would see US tariffs on Indonesian goods reduced from a threatened 32 per cent to 19 per cent in exchange for a series of concessions.
But US officials now believe Jakarta is reneging on agreements to eliminate non-tariff barriers on American industrial and agricultural exports as well as digital trade issues, the newspaper reported.
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The two sides are also clashing over an effort by the US to include clauses that Indonesia sees as an infringement on its economic sovereignty, according to the FT.
Representatives for the White House and US Trade Representative did not immediately respond to a request for comment on Tuesday night.
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Under the deal announced in July, Indonesia announced plans to purchase some US$19 billion in American products, led by 50 Boeing jets, and erase duties on imports from the US.