Indonesia has rejected US coercive trade practices

Indonesia resists attempts Donald Trump to force it to accept the so-called "poison pill" and other coercive provisions in a trade agreement with the US. The refusal calls into question America's efforts to counter China's influence in Southeast Asia, writes Financial Times.

The dispute arose during negotiations to finalize a previous trade deal agreed in July, which included a 19% "reciprocal tariff" for Indonesia. Three people familiar with the negotiations said Indonesia rejected provisions that the U.S. imposed on Malaysia and Cambodia in similar deals last month.

The U.S. has sought to apply so-called "poison pills" more widely – "loyalty" provisions in trade agreements. These terms threaten to terminate agreements if countries sign any competing pact that the U.S. believes jeopardizes American interests.

"We do not agree with these points because they concern economic sovereignty," said an Indonesian government official.

The agreements between Malaysia and Cambodia stipulate that the states must adhere to US sanctions and other economic restrictions, refrain from imposing digital taxes that could limit American companies, and coordinate with Washington on any future digital trade agreements with third countries.

According to a source familiar with the government's position, Indonesia fears that such conditions could deprive the country of its autonomy and effectively tie it to the demands formulated by the United States.

• On October 27, the United States, under the leadership of Donald Trump concluded bilateral trade agreements with Malaysia and Cambodia, and signed a framework agreement with Thailand, which provides for cooperation in eliminating tariff and non-tariff barriers to trade.