How to Conduct Trade Negotiation

Consultations and Prepare Position Papers:

A Practical Guide for Indonesian Trade
Negotiators and Private Sector Representatives
How to Conduct Trade Negotiation Consultations and Prepare Position Papers:
A Practical Guide for Indonesian Trade Negotiators and Private Sector Representatives

Authors: Jessica Callista, Alexandre Larouche-Maltais, and Wenguo Cai

About the TPSA Project

TPSA is a five-year C$12-million project funded by the Government of Canada through Global
Affairs Canada. The project is executed by The Conference Board of Canada, and the primary
implementation partner is the Directorate General for National Export Development, Ministry
of Trade.

TPSA is designed to provide training, research, and technical assistance to Indonesian

government agencies, the private sector—particularly small and medium-sized enterprises
(SMEs)—academics, and civil society organizations on trade-related information, trade policy
analysis, regulatory reforms, and trade and investment promotion by Canadian, Indonesian,
and other experts from public and private organizations.

The overall objective of TPSA is to support higher sustainable economic growth and reduce
poverty in Indonesia through increased trade and trade-enabling investment between
Indonesia and Canada. TPSA is intended to increase sustainable and gender-responsive trade
and investment opportunities, particularly for Indonesian SMEs, and to increase the use of
trade and investment analysis by Indonesian stakeholders for expanded trade and investment
partnerships between Indonesia and Canada.

©2019 TPSA Project

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Contents

List of Acronyms and Abbreviations .............................................................................................. 6

Executive Summary ........................................................................................................................ 7
Background and Introduction ...................................................................................................... 10
Key Multilateral, Regional, and Bilateral Trade Negotiations ................................................. 10
Defining Trade Negotiation Consultations .............................................................................. 11
Current Trade Negotiation Consultations ................................................................................ 11
Rationale for a Practical Guide for Indonesian Trade Negotiators and Private Sector
Representatives ....................................................................................................................... 13
Part I: How to Conduct Trade Negotiation Consultations ........................................................... 15
Establishing a TNC Mechanism in Indonesia ........................................................................... 15
Key Stakeholders in TNCs ..................................................................................................... 15
TNC Implementation Principles ........................................................................................... 15
Transparent and Accessible ............................................................................................. 15
Systematic ........................................................................................................................ 16
Effective ........................................................................................................................... 16
Constant ........................................................................................................................... 16
Benefits of Conducting and Participating in TNCs in Indonesia ........................................... 16
Obtaining Accurate, Relevant, and Up-to-Date Information ........................................... 17
Identifying Cross-Border Bottlenecks and Promising Market Opportunities .................. 17
Improving Communication Between the Government and Domestic Stakeholders ...... 18
Strengthening Relationships Between the Government and Other Indonesian
Stakeholders ..................................................................................................................... 18
Building Internal Capacity Development ......................................................................... 19
Formulating a TNC Strategy ................................................................................................. 19
Forming a Dedicated Team .............................................................................................. 19
Providing Background Information and a List of Negotiating Issues ............................... 20
Identifying Key Stakeholders for TNCs ............................................................................. 20
Conducting TNCs at the Right Time Before a Trade Negotiation Round ......................... 20
Keeping Communications Going: Updating and Following Up ........................................ 21
Successful Approaches to Trade Negotiation Consultations: Three “Cs” ............................... 21
Coordination With Other Government Agencies at Both Central and Local Levels (Internal
Consultations) ...................................................................................................................... 22
Identifying Relevant Government Ministries and Agencies ............................................ 22
Sharing Information—Regular Communications/Meetings With Intergovernmental
Agencies, Local Governments, and the Parliament ......................................................... 23
Preparing Meeting Minutes ............................................................................................. 24
Deciding on the Information to Be Shared ...................................................................... 24
Preparing Government Negotiating Positions ................................................................. 24
Consultation With Private Sector Business Associations, Sectoral Groups, and Other
Interested Stakeholders ....................................................................................................... 25
Identifying Relevant Business and Industry Organizations .............................................. 25
Engaging Academicians and Trade Experts ..................................................................... 25

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 Engaging Other Interest Groups ...................................................................................... 26
Preparing Research and Position Papers ......................................................................... 26
Communication With the General Public, Particularly Those Affected by Trade Agreement
Negotiations ......................................................................................................................... 26
Raising Awareness of Interested Parties and the General Public on FTAs and TNCs ...... 27
Gathering Input/Concerns From Affected Stakeholders ................................................. 27
Generating Support From Stakeholders .......................................................................... 27
Three Stages of Trade Negotiation Consultations ................................................................... 28
Before the Trade Negotiation Launch: Getting Prepared .................................................... 28
During the Trade Negotiation: Actively Engaged ................................................................. 29
After the Trade Agreement Is Reached: Ensuring Smooth Implementation Through Follow-
Up Consultations and Communications ............................................................................... 30
Instruments and Resources for Trade Negotiation Consultations .......................................... 31
Select Instruments and Mechanisms for Trade Negotiation Consultations ........................ 31
TNC Website ..................................................................................................................... 31
Other Electronic Means ................................................................................................... 31
Meetings and Conference Calls ....................................................................................... 32
Open Consultations .......................................................................................................... 32
Suggestions for TNCs ............................................................................................................ 33
Invest in Human Resources .............................................................................................. 33
Monitor International Trade Negotiations ...................................................................... 34
Communicate With Key Stakeholders ............................................................................. 35
Members or Direct Stakeholders ................................................................................. 35
Government Authorities and Agencies ........................................................................ 36
The General Public ....................................................................................................... 36
Part II: How to Prepare Trade Negotiation Position Papers ........................................................ 38
Why Position Papers Are Needed in Trade Negotiations and Consultations .......................... 38
What Is a Trade Negotiation Position Paper? ...................................................................... 38
Purpose of TNPPs ................................................................................................................. 40
Types of TNPPs ......................................................................................................................... 42
TNPPs Prepared by Different Types of Stakeholders ........................................................... 42
TNPPs Prepared by Government Agencies ...................................................................... 42
1. For Official Submission ............................................................................................. 42
2. For Public Communication ....................................................................................... 42
3. For Internal Consultation ......................................................................................... 43
TNPPs Prepared by Private Sector Business Associations ............................................... 44
1. Internal Communication With Members ................................................................. 45
2. Formal Submission to Government ......................................................................... 45
TNPPs Prepared by Academic, Media, and Other Interest Groups ................................. 47
1. Position Paper by Academic Researchers ................................................................ 47
2. Position Paper by the Media .................................................................................... 47
3. Position Paper by Interest Groups ........................................................................... 47
TNPPs in Various Forms ....................................................................................................... 48
Comprehensive Report Covering the Entire Trade Agreement ....................................... 48

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 Technical Paper Covering One or Two Selected Issues/Topics ........................................ 49
Op-Ed and Media Release ................................................................................................ 49
Key Steps to Writing a Trade Negotiating Position Paper ....................................................... 50
Step 1: Identify and Select a Topic for Your Position Paper ................................................ 50
Step 2: Conduct Preliminary Research and Monitor Relevant Trade Negotiations ............ 51
Step 3: Create an Outline of Your Position Paper ................................................................ 52
Step 4: Draft Your Position Paper ........................................................................................ 53
Step 5: Edit, Review, and Revise Your TNPP ........................................................................ 54
Other Tips and Resources for Writing TNPPs .......................................................................... 55
Tips and Suggestions ............................................................................................................ 55
Map Out All Negotiating Issues and Concerns ................................................................. 56
Dos: .............................................................................................................................. 56
Don’ts: .......................................................................................................................... 56
Select and Decide on the Topic ........................................................................................ 56
Dos: .............................................................................................................................. 56
Don’ts: .......................................................................................................................... 57
Gather Supporting Data and Information ........................................................................ 57
Dos: .............................................................................................................................. 57
Don’ts: .......................................................................................................................... 57
Build Arguments to Support Your Position ...................................................................... 58
Dos: .............................................................................................................................. 58
Don’ts: .......................................................................................................................... 58
Brainstorm With Team Members .................................................................................... 58
Dos: .............................................................................................................................. 58
Don’ts: .......................................................................................................................... 58
Useful Resources .................................................................................................................. 59
International Organizations ............................................................................................. 59
Government Agencies ...................................................................................................... 60
Business Associations ....................................................................................................... 60
Non-Governmental Organizations, Research Institutions, and Others ........................... 61
Bibliography ................................................................................................................................. 63

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List of Acronyms and Abbreviations
3Cs Coordination, consultation, and communications
APEC Asia-Pacific Economic Cooperation
APINDO Asosiasi Pengusaha Indonesia/Employers’ Association of Indonesia
APMA Automotive Parts Manufacturers’ Association
ASEAN Association of South East Asian Nations
Badan POM National agency of drug and food control of Indonesia
BKPM Badan Koordinasi Penanaman Modal/Indonesia Investment Coordinating
Board
BSN Badan Standarisasi Nasional/International Organization for
Standardization in Indonesia
CEPA Comprehensive Economic Partnership Agreement
CETA Comprehensive Economic and Trade Agreement (EU–Canada)
CSIS Centre for Strategic and International Studies
CUFTA Canada–Ukraine Free Trade Agreement
EU European Union
EuroCham European Chamber of Commerce in Indonesia
FTA Free Trade Agreement
GATS General Agreement on Trade in Services
GATT General Agreement on Tariffs and Trade
ICC International Chamber of Commerce
IT Information technology
KADIN Indonesia Kamar Dagang dan Industri Indonesia/Indonesian Chamber of Commerce
and Industry
MoT Ministry of Trade of the Republic of Indonesia
OECD Organisation for Economic Co-operation and Development
RCEP Regional Comprehensive Economic Partnership
SIA Sustainability impact assessment
SME Small and medium-sized enterprise
SPS Sanitary and phytosanitary
TNC Trade negotiation consultation
TNPP Trade negotiation position paper
TPP Trans-Pacific Partnership Agreement
TPSA Canada–Indonesia Trade and Private Sector Assistance
TRIPs Trade-Related Intellectual Property Rights
UNCTAD United Nations Conference on Trade and Development
WTO World Trade Organization

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Executive Summary
Indonesia has been actively participating in the negotiations and implementation of the World
Trade Organization and free trade agreement commitments in the hope that the country could
benefit greatly from those trade agreements. To negotiate and implement trade agreements, an
effective trade negotiation consultation (TNC) mechanism should be put in place for Indonesia.

TNC refers to the multi-level and multi-stakeholder coordination, consultation, and

communications (3Cs) process of trade agreement negotiations and implementation among
government agencies (at both central and local levels), parliamentarian committees, private
sector business associations, academia, civil society organizations, other interest groups, and the
general public. Key benefits of conducting and participating in TNCs include obtaining accurate,
relevant, and up-to-date information; identifying trade and investment barriers and
opportunities; improving communications and relationships between the government and other
Indonesian stakeholders; and strengthening trade-related capacity for the country.

The Government of Indonesia and other Indonesian stakeholders must come up with a TNC
strategy that works for both government and other stakeholders. An effective TNC strategy
should include forming a dedicated team, providing background information of negotiating
issues, identifying key stakeholders for each trade agreement negotiation, conducting TNCs at
the right time before each trade negotiation round, and keeping the communications open with
relevant stakeholders.

Indonesia currently conducts only ad hoc and limited trade negotiation consultations, partly due
to the lack of human resources and technical know-how of trade negotiating issues and to
unfamiliarity with the TNC process and best practices of other countries.

The purpose of this guide is to provide guidance for Indonesian officials and private sector
representatives to learn the best practices, particularly from Canada. It has been prepared under
the auspice of the Canada–Indonesia Trade and Private Sector Assistance (TPSA) project by three
Canadian and Indonesian trade experts. After the introduction, the guide is divided into two
parts: Part I focuses primarily on how to conduct TNCs, while Part II is intended to demonstrate
how to prepare trade negotiation position papers. Readers are advised to consult the two parts
of the guide altogether.

The 3Cs are key approaches to TNCs practised in Canada and a few other countries. The 3Cs have
different functions. Coordination is more used internally by government agencies. Consultation
is aimed at the business community and other interested stakeholders. Communication is
primarily geared to the general public, especially those affected by trade agreement negotiations
and implementation. The 3Cs are sometimes used interchangeably by the stakeholders in the
TNC process.

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The following is a short checklist of the 3Cs on TNCs:

 Coordination with other government agencies and the parliament

– Identify relevant government ministries and agencies at both central and local levels.
– Share information and conduct regular coordination meetings with government agencies.
– Prepare minutes of meetings.
– Document and file relevant information.
– Prepare possible trade negotiation position papers.

 Consultations with Indonesian business and other relevant stakeholders

– Identify relevant business and industry organizations.
– Engage academicians and experts.
– Engage other interest groups.
– Prepare research and position papers.

 Communications with interested parties and the general public

– Raise awareness of interested parties and the general public on trade negotiations.
– Gather input or concerns from affected stakeholders.
– Generate support from all stakeholders.

TNCs should be conducted before, during, and after any trade agreement negotiations.

Before the launch of trade agreement negotiations—get prepared. The Government of Indonesia
should take the first initiative by conducting studies (i.e., feasibility study and/or impact
assessment); key business associations should identify opportunities and challenges through
trade agreement negotiations; and business associations should ensure that the voices of
potential winners as well as losers of the proposed trade agreements are heard by Indonesian
government negotiators and policy-makers.

During the trade agreement negotiations—be actively engaged. The government should share
non-confidential information with other Indonesian stakeholders as well as sensitive and
confidential information on certain negotiating issues with selected Indonesian stakeholders
only; it could also conduct small group discussions with selected Indonesian stakeholders.
Indonesian stakeholders must stand ready to provide technical and policy advice to the
government, and both government and the private sector should monitor the trade agreement
negotiations closely.

After the trade agreement has been reached—ensure smooth implementation through follow-
up consultations. The Government of Indonesia should ensure prompt signature by the Minister
of Trade and then quickly take steps to ratify the trade agreement by the parliament and
communicate with the general public on the impacts of the signed trade agreement, the
implementation plan, and the mitigating strategy for any negative impact. Business associations
and other interested parties should support the government by providing comments on the draft
laws and regulations in order to fully implement the signed trade agreement.

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A trade negotiation position paper (TNPP) is a written essay or article that presents an arguable
opinion about an international trade negotiation issue (or a group of issues) prepared in the
context of the consultations of bilateral, regional, or multilateral trade negotiations. TNPPs can
be prepared by government agencies, private sector business associations, academia, and other
interested groups throughout the preparation and negotiation processes of trade agreements.

TNPPs seek to influence or convince their trade partners and their audience (other interested
parties) that the position presented carries valid points supported by facts and technical
information, which should be taken into consideration for trade negotiations or is worth listening
to by other trade partners for advancing trade negotiations and reaching a satisfactory
negotiation outcome.

A good TNPP should cover the following important elements: background information and facts
of the selected topic(s), supporting data and information through research, analysis to support
your positions, counter-arguments against other positions, and recommendations and follow-up
actions (if applicable)

This practical guide also identifies several key steps to writing a TNPP, such as identifying and
selecting a topic for your position paper; conducting preliminary research and monitor relevant
trade negotiations; creating an outline of your position paper, drafting your TNPP, and editing,
reviewing, and revising your TNPP.

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Background and Introduction

Key Multilateral, Regional, and Bilateral Trade Negotiations

As a member of the World Trade Organization (WTO), Association of Southeast Asian Nations
(ASEAN), and G-20, Indonesia has been actively participating in the negotiations and
implementation of free trade agreements (FTAs). As other countries that are negotiating FTAs,
Indonesia generally seeks to achieve the following economic, social, and development objectives:
 boosting exports and improving trade competitiveness, particularly for small and
medium-sized enterprises (SMEs);
 reducing the cost of imports for domestic firms to better integrate regional value chains;
 increasing current market shares and creating new markets;
 attracting more foreign investment to stimulate economic growth and create jobs;
 harmonizing domestic standards and technical regulations;
 stimulating domestic reforms to improve the trade and investment environment;
 strengthening economic cooperation, including capacity-building for human resources.

Table 1 provides an overview of the status of the FTAs that Indonesia has negotiated with other
trading partners.

Table 1
Indonesia and Its Trading Partners
Signed and In Effect
1. ASEAN Free Trade Area (signed in 1992,
entered into force in 1993)
2. ASEAN–China Comprehensive Economic
Cooperation Agreement (signed in 2004,
entered into force in 2005)
3. ASEAN–Australia and New Zealand Free
Trade Agreement (signed in 2009, entered
into force in 2010)
4. ASEAN–India Comprehensive Economic
Cooperation Agreement (signed in 2009,
entered into force in 2010)
5. ASEAN–Japan Comprehensive Economic
Partnership (signed and entered into force
in 2008)
6. ASEAN–Korea Comprehensive Economic
Cooperation Agreement (signed in 2006,
entered into force in 2007)
Signed but Not Yet in Effect
1. Indonesia–European Free Trade
Association Comprehensive Economic
Partnership Agreement (signed in 2018)
2. Indonesia–Australia Comprehensive
Economic Partnership Agreement (signed
in 2019)
Under Negotiation
1. Multilateral level: WTO negotiations
under the Doha Development Agenda
2. Regional level: Regional Comprehensive
Economic Partnership (RCEP), which
comprises ASEAN and six trading
partners (Australia, New Zealand, China,
Japan, Korea, and India)
3. Bilateral level: European Union (EU)

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 7. Indonesia–Japan Economic Partnership
Agreement (signed in 2007, entered into
force in 2008)
Source: Asia Regional Integration Centre, “Indonesia: Trade and Investment.”

Defining Trade Negotiation Consultations

Trade negotiation consultations (TNC) comprise a broad consultation mechanism on trade

negotiations and implementation, which involves not only the consultations between the
government and the private sector, but also coordination among government agencies,
consultations, and communications with non-business players, such as civil society groups,
academicians, researchers, labour unions, and other stakeholders. (See “Trade Negotiation
Consultations.”)

Trade Negotiation Consultations

TNCs refer to the multi-level and multi-stakeholder coordination, consultation, and

communication processes of trade agreement negotiations and implementation among
government agencies (both central and local levels), parliamentarian committees, private sector
business associations, academia, civil society organizations, other interest groups, and the
general public.

Source: Authors’ compilation.

Current Trade Negotiation Consultations

Currently, Indonesia conducts ad hoc trade negotiation consultations (i.e., only for a specific
purpose or on a need basis), and without more organized and systematic approach. The Ministry
of Trade (MoT), as the lead negotiating agency for Indonesia’s trade agreements, drives the TNC
process, both with other ministries and public agencies and with other domestic stakeholders.
TNCs with domestic stakeholders may involve members of Kamar Dagang dan Industri Indonesia
(KADIN Indonesia) and Asosiasi Pengusaha Indonesia (APINDO), as well as
academicians/researchers and other interest groups. TNC activities include focus group
discussions, bilateral meetings, roadshows, and larger-scale events such as seminars and
workshops. Exhibit 1 illustrates the current Indonesian consultation mechanism and activities on
trade agreement negotiations with Indonesian stakeholders.1

1
Indonesian stakeholders refer to individual Indonesian citizens, companies duly established in
Indonesia, members of KADIN Indonesia and APINDO, and other interested parties such as
academicians, experts, women, youth, and others.

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Exhibit 1
Indonesia’s Current Trade Negotiation Consultation Mechanism

Government of Indonesia
(represented by the Indonesian stakeholders
Ministry of Trade)

Activities:
Focus group discussions
Meetings
Roadshows
Events (seminars and workshops)

Indonesia’s TNC activities can be divided into two major categories (i.e., individual initiative and
collaborative approach). (See Table 2.)

Table 2
TNC Activities
No. Activity category Description
1. Individual initiative This occurs where one party (i.e., the MoT, or a single
Indonesian stakeholder, often KADIN Indonesia or APINDO)
initiates and hosts the consultations.

For example, on February 7, 2019, KADIN Indonesia invited the

chief negotiator for RCEP, Mr. Iman Pambagyo, to provide
general information on the RCEP negotiations. The discussion
was attended by high-level members of KADIN Indonesia, and
the participants had opportunities to directly consult the chief
negotiator on the progress of the RCEP negotiations and to voice
their sectoral and other concerns.

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 2. Collaborative This occurs where both government and other Indonesian
approach stakeholders jointly initiate and collaborate on certain
consultation activities.

For example, in 2018, the MoT, KADIN Indonesia, APINDO, the

European Union Delegation to Indonesia, and the European
Chamber of Commerce in Indonesia (EuroCham) jointly held a
series of roadshows on the Indonesia–EU CEPA (European
Union–Comprehensive Economic Partnership Agreement)
negotiations. The roadshows were carried out in selected big
cities, including Jakarta, Surabaya, Medan, Manado, and
Makassar.
Source: Authors’ compilation.

Rationale for a Practical Guide for Indonesian Trade Negotiators and Private
Sector Representatives

Although there have been positive developments in the TNC process in Indonesia, the
consultation approach still needs further improvement. In practice, the lack of systematic TNC
mechanisms in place and formal frameworks for gathering opinions and contributions from
businesses and other stakeholders creates unpredictability and uncertainty. The private sector
may not be aware of the time and sequence of the trade negotiations that will take place and
whether or when they will be consulted. This often results in limited preparation time to convey
its input or recommendations through position papers, and thus, there is a limited quantity and
quality of contributions from the private sector and other stakeholders in the TNC process.2

In addition, business-led organizations and other private sector associations face internal
challenges, such as limited human and financial resources, which preclude them from providing
comprehensive feedback and technical inputs that the Government of Indonesia requires to
conduct trade negotiations. They may also be less inclined to participate in the TNC process if
they feel that their input is not fully taken into consideration by government negotiators, since
they rarely receive feedback.

Nevertheless, it is critically important for the private sector and other interested groups to
participate in the TNC process in order to make their voices heard by the Government of
Indonesia when negotiating FTAs with Indonesia’s trade partners.

This guide provides practical advice and tips for the Government of Indonesia, the private sector,
and other Indonesian stakeholders on how to conduct and participate in TNCs, as well as on how
to prepare trade negotiation position papers. Prepared in the framework of the TPSA project,

2
For more information on challenges related to public–private consultations for FTA negotiations in
Indonesia, see Callista, Public-Private Consultation.

13
this guide identifies best practices and gives examples mainly from Canada, but also from other
countries. Information provided in this guide was collected during a study visit regarding public–
private consultation for FTA negotiation in Canada, 3 interviews with practitioners, and desk
research conducted jointly by the three authors of the guide.

This practical guide is divided into two parts. The first part lays out the guidelines on how to
conduct TNCs in Indonesia, while the second part is intended to provide some guidelines and
suggestions for the preparation of trade negotiation position papers in the consultation process.
The two parts of the guide are closely related and mutually supportive. The readers should read
the two parts together and follow the tips and suggestions to conduct TNCs and to prepare trade
negotiation position papers. This guide should be useful to both government negotiators and
private sector representatives as well as other interested stakeholders.

3
KADIN Indonesia representative Jessica Callista spent two months in Canada to conduct study visits
and meetings with 16 public and private sector institutions in Ottawa, Toronto, Montréal, and Québec
City. For more information, see Canada–Indonesia Trade and Private Sector Assistance Project,
“Internship Focuses on Canada’s Public-Private Consultation Mechanism.”

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Part I: How to Conduct Trade Negotiation Consultations

Establishing a TNC Mechanism in Indonesia

Key Stakeholders in TNCs

TNC will bring benefits to public and private sector institutions as well as to other interest groups.
When these consultations open dialogue among all interested parties, certain key stakeholders
should always be involved. More specifically, the following key stakeholders play an important
role in the TNC process:

 ministries and governmental agencies, including:

o lead negotiating agency (i.e., the MoT and relevant directorates responsible for
trade negotiations and trade policy and export promotion)
o other ministries directly involved in trade negotiation or indirectly affected by
international obligations under trade agreements, such as the Ministry of Finance,
Indonesia Investment Coordinating Board (BKPM), Ministry of Law and Human
Rights (for intellectual property right matters), Ministry of Industry, Ministry of
Health, Ministry of Agriculture, and other related agencies;
 sub-central and local government agencies;
 People’s Representative Council (Indonesia’s Parliament);
 private sector, such as KADIN Indonesia and APINDO and their members;
 other interested groups, such as labour unions, women’s business associations,
environmental groups, youth, and others;
 experts, and academic and research institutions;
 media (newspapers, magazines, and other online news groups).

TNC Implementation Principles

For producing expected benefits, the TNCs should be conducted following key implementation
principles that will ensure that the consultations will be meaningful for the participating
stakeholders. These principles are:

1. Transparent and Accessible

Public documents and information must be made transparent for and accessible by all
stakeholders, so that every party understands the positions and input from other parties. These
documents may include, as appropriate, trade agreement impact assessment studies conducted

15
before the negotiations,4 general and specific objectives of the negotiations,5 and other relevant
documentation.

2. Systematic
There should be a systematic mechanism in place for conducting the TNC, with a defined time
frame and process for launching consultations and collecting input. This requires information and
positions to be conveyed and exchanged systematically between the government and interested
stakeholders. It also implies that the government will inform stakeholders before undertaking
trade negotiations and providing them with an appropriate time period to submit their views.6

3. Effective
The consultations should give opportunities for all interested stakeholders to request
information, convey their positions, and voice their concerns in an effective manner. This implies
offering the opportunity for comment to a variety of stakeholders, some of whom may not favour
undertaking trade negotiations. Collecting these views can be essential to identify vulnerable
industries and potential defensive interests.

4. Constant
It is also crucial to have TNCs conducted constantly and periodically, from the preparation to the
conclusion of a trade agreement negotiation, as well as its implementation. Sometimes, as trade
negotiations are intense and fast, all key stakeholders should be fully engaged in the TNC process
constantly and consultation events/meetings should be conducted periodically.

Benefits of Conducting and Participating in TNCs in Indonesia

Conducting TNCs between the Government of Indonesia and other Indonesian stakeholders can
significantly help Indonesia to successfully negotiate trade agreements, provided that the
consultations are conducted in a transparent, systematic, effective, and constant manner. The
TNC process should be a flexible and living mechanism that can be implemented continuously
throughout the planning, preparation, negotiation, and implementation of a trade agreement.
Additionally, the more engaged the stakeholders, the better results the TNCs will produce.

4
As a first step before undertaking bilateral FTAs, the Canadian government usually conducts a joint
feasibility study to explore the potential for future FTAs, to identify the scope and level of ambition of
the FTAs, and the impact on trade and investment flows. See, for example, Global Affairs Canada, “Joint
Feasibility Study on a Potential Canada–ASEAN Free Trade Agreement.”
5
Office of the United States Trade Representative publishes a summary of the negotiating objectives for
each international trade negotiation initiative, before and during the round of negotiation. See, for
example, Office of the United States Trade Representative, “USTR Releases Updated NAFTA Negotiating
Objectives.”
6
In Canada, the federal government officially announces new TNCs with a notice in the Canada Gazette,
provides background information, and informs stakeholders on how to submit their views as well as
specific deadlines in the same notice. See, for instance, Government of Canada, “Canada Gazette Part I,
Volume 152, Number 35, Government Notices.”

16
The government and other Indonesian stakeholders are encouraged to conduct TNCs on a regular
basis in order to generate key benefits of TNCs, which can be summarized as follows:

1. Obtaining Accurate, Relevant, and Up-to-Date Information

By conducting and participating actively in TNCs, Indonesian stakeholders should aim at obtaining
accurate, relevant, and up-to-date information directly from their government and other sources
on certain negotiating issues and the positions of the parties involved in current WTO and FTA
negotiations. This information is crucial for Indonesian stakeholders, especially for the private
sector.

Indonesian stakeholders may also provide information and input to the Government of Indonesia
on the negotiating issues and challenges they are facing. Before the negotiation launch, this
information may be crucial so government negotiators can define the scope, level of ambition,
and timeliness of trade negotiations from the business sector and other key stakeholders. During
the negotiation process, domestic stakeholders’ input will also help trade negotiators to identify
offensive and defensive interests, as well as economic and cultural sensitivities from the business
sector and other interested groups.

Without the right and systematic TNC mechanism in place, input given by Indonesian
stakeholders might be scattered, incomplete, or incorrect. As the TNC mechanism is put in place,
participating stakeholders will have more time to prepare and submit comprehensive input for
trade negotiations.

2. Identifying Cross-Border Bottlenecks and Promising Market Opportunities

From the Government of Indonesia’s perspective, conducting TNCs can contribute to achieving
trade negotiation objectives. For highly technical issues, for example, position papers and reports
prepared by private sector representatives may clarify and explain complexities to government
officials and further fast-track the negotiation process. TNCs can also help identify bottlenecks at
the border, which can be burdensome documentary or border procedures or requirements, or
delays in the submission of documents for the clearance of goods. Consultations may also help
address main non-tariff barriers to trade that exporters face abroad, such as trade-restrictive
sanitary and phytosanitary (SPS) measures and other technical barriers to trade. These problems
can be addressed during trade negotiations, if they are brought to the attention of trade
negotiators.

From the private sector perspective, TNCs may shed light on new potential export markets by
providing information on promising market opportunities abroad. For instance, the Government
of Indonesia may share background information and the results of impact assessment studies on
a potential FTA before undertaking negotiations in the framework of TNCs with the Indonesian
private sector and other stakeholders.

In the long run, a systematic TNC will enable Indonesian stakeholders to produce comprehensive
inputs covering cross-border bottlenecks as well as offer opportunities to the government in the
process of trade negotiations and implementation. These fruitful consultations will ensure that

17
the negotiation outcomes are sound, workable, and beneficial to the economic and social
interests of the country.

3. Improving Communication Between the Government and Domestic Stakeholders

TNCs will enable direct communications between the government and other Indonesian
stakeholders through various tools (e.g., bilateral meetings, public events, and e-mails). With a
clear TNC mechanism and tools, both the government and other Indonesian stakeholders will
have confidence in communicating with each other throughout the process of trade agreement
negotiations and implementation.

Such communications will contribute to building trust and stronger relationships between the
Government of Indonesia and other Indonesian stakeholders. Smooth communications will also
avoid any misunderstandings or miscommunications between parties. In the longer term, TNCs
can help to gain support on trade negotiations from the general public.

In this context, TNCs may become a useful opportunity for private sector business associations
and other interest groups, as they may achieve their advocacy objectives and fulfill their
mandates by providing a platform for their members’ voices to be heard by the government on
international trade matters. This smooth, two-way communication will serve both the
government and other stakeholders, and become the key to successful TNCs for Indonesia.

4. Strengthening Relationships Between the Government and Other Indonesian Stakeholders

With regular and continuous communications and meetings (as part of TNC direct tools), the
government and other Indonesian stakeholders will get to know each other much better in the
consultation process; hence, the relationships should be strengthened. Disseminating and
collecting clear, relevant, and updated information on trade agreement negotiations and
implementation in a timely manner also contributes to reducing false messages, hoaxes, and
other negative gossip that could be undermining the negotiating process.

For instance, the current TNC activities jointly conducted by the Indonesian government, KADIN
Indonesia, and APINDO have effectively brought the government and other Indonesian business
associations closer to each other in formulating trade negotiating strategies and positions in
several FTA negotiations. However, this is just a small part of the whole TNC process that needs
to be strengthened in Indonesia.

In its full implementation, TNCs should be able to bring all interested stakeholders together. At
that stage, not only will the government have strong relationships with those key Indonesian
business associations, but also with other government agencies (at both central and local levels),
and other Indonesian stakeholders (including academic and research communities, other civil
society organizations, such as environmental groups, labour unions, youth, and women’s groups),
as they also have vested interest in trade negotiations and implementation.

18
5. Building Internal Capacity Development
The TNC itself is a consultation mechanism between the government and Indonesian
stakeholders through which both the government and other parties will develop their internal
capacities in trade negotiations and trade consultations. By formulating solid trade negotiation
positions, based on evidence and inputs from participating stakeholders, interested Indonesian
parties will be triggered to think and act under a specified time frame and with clear deliverables
before each FTA negotiation round.

Whenever the government provides information and requests input on certain issues, Indonesian
stakeholders will be required to digest the information in order to provide the required input in
the TNC process. This will increase the internal capacity of relevant Indonesian stakeholders.

The same development will also affect the Government of Indonesia, as it will also process the
input from Indonesian stakeholders and prepare the best positions for the trade negotiations on
behalf of all stakeholders in Indonesia.

Formulating a TNC Strategy

In order to plan and implement an effective TNC in Indonesia, the government and other
Indonesian stakeholders must come up with a TNC strategy that works for both the government
and other stakeholders. This is also part of each other’s commitments to keep the communication
channels open. A joint strategy among all parties is the best one, which requires all parties
involved to have the capacity and commitment to conduct the TNC on specific trade negotiating
issues within specific timelines. The following are key elements to be considered in a joint TNC
strategy for Indonesia:

1. Forming a Dedicated Team

Each of the government and Indonesian stakeholders should form a dedicated team for
contributing to TNCs. Its size should be adapted depending on the internal structure and
individual human and financial capacities of each party. For smaller organizations, appointing a
single officer as a contact point or as the representative of his or her organization during the TNCs
can suffice.7

It is also important to have dedicated team members in place for a certain period of time—with
low or no turnover of the members—until an FTA is concluded in the negotiating process in order
to maintain continuity. In addition to the main contact person, smaller organizations can explore
the option of identifying an alternate, who could help and replace the person in charge in case of
unavailability.

7
In Canada, most private sector organizations have a limited number of staff dedicated to advocacy on
international trade issues. For example, the Canadian Chamber of Commerce maintains only one
position, Director of International Affairs, to deal with all topics related to cross-border trade, FTAs,
foreign investment, and to represent the organization during TNCs.

19
Finally, since a TNC is a living mechanism, all parties should ensure that their team is engaged
actively with each other and keep communications flowing.

2. Providing Background Information and a List of Negotiating Issues

The MoT, as the lead negotiating agency for Indonesia, should aim to produce brief summaries
of background information. Upon request, more complete information may also be provided to
other Indonesian stakeholders.

In addition, the government should prepare a list of negotiating issues to be discussed with other
Indonesian stakeholders before conducting a TNC event. The list of issues should be clearly
defined and selected. They should reflect the government and other stakeholders’ priorities in
the context of the upcoming trade negotiations. Difficult or sensitive topics should not be
ignored, otherwise the TNCs would miss the target.

There should be clear objectives that the government expects from other Indonesian
stakeholders in the TNC process. Objectives can include, for instance:
 assessing the appropriateness of launching trade negotiations
 evaluating the adequate level of ambition and the scope of a potential trade agreement
 identifying promising market opportunities versus current bottlenecks, etc.

The Government of Indonesia should also clearly indicate the expected inputs and the format
and should show its openness and appreciation for such input and suggestions from participating
stakeholders.

3. Identifying Key Stakeholders for TNCs

To reach their objectives, TNCs should show inclusivity by opening the opportunity for the wider
community of Indonesia to participate in the consultations. However, requesting too much
regular input from the same stakeholders, or from the wrong ones, can lead to “consultation
fatigue.” Thus, the government must find a balance between inclusivity and efficiency, to make
sure that essential stakeholders produce contributions and that the indirectly affected
stakeholders feel part of the process. The government should carefully identify key stakeholders
and participants that have particular interest in certain FTAs or negotiating issues.

In this regard, using different channels of communication or organizing various types of events
can help. At an early stage of trade negotiations, the government may choose to organize large-
scale events to collect initial reactions or positions from all interested stakeholders. However,
during peak negotiations, the government can conduct bilateral meetings, or request input on
specific negotiating issues with selected private sector organizations and other interest groups
that have a recognized expertise in the field. Flexibility is the key to success.

4. Conducting TNCs at the Right Time Before a Trade Negotiation Round

The government and other Indonesian stakeholders should hold a TNC with sufficient time
allocated before each FTA negotiation round. How much time is needed depends on the list of
negotiating issues and information required for the trade agreement negotiations.

20
For difficult trade negotiating issues with much more information, it is possible to conduct more
than one TNC before each FTA negotiation round. The government must provide enough time
for Indonesian stakeholders to study the information (usually two to three weeks before the TNC
gathering).

5. Keeping Communications Going: Updating and Following Up

Last but not least in formulating a successful TNC strategy is to keep the communications going
among all interested stakeholders. The communications should be conducted by a dedicated
MoT team responsible for the TNC.

Communications may take various forms, such as updating and following up. For example, after
an FTA negotiation round, the government may update the status of certain negotiating issues
of interest to Indonesian stakeholders. On the other hand, Indonesian stakeholders might also
follow up with the government on the next steps of the trade negotiations and consultations.

Successful Approaches to Trade Negotiation Consultations: Three “Cs”

Successful TNCs depend on the participants and their characteristics (e.g., commitments,
discipline, activeness and responsiveness). As previously stated in the definition of TNCs,
coordination, consultation, and communication (3Cs) are key approaches to conducting
successful TNCs and achieving overall objectives.

As each stakeholder has a different role in the TNC process, the 3Cs should constitute a
systematic approach to assist through the TNC process so that all stakeholders understand their
roles in and responsibilities for conducting TNCs. In this case, government agencies and business
associations have different roles and responsibilities, where each will have to go through the TNC
process without involving the other until all come to a solid conclusion or agree to consult and
communicate.

The 3Cs are the core of a successful TNC, and the expected results are:

 clear and detailed roles and responsibilities for every stakeholder involved, internally
and externally8;
 active and smooth communications, internally and externally;
 solid information and feedback among the stakeholders (as the information and
feedback have been approved in consensus internally);
 well-monitored and tracked progress and results;
 no overlapping roles (of stakeholders/participants) and information.

8
The meaning of “Internally” is an internal communication of specific groups of stakeholders (e.g.,
internal meeting of the government agencies that does not involve other parties). On the other hand,
“externally” means external communication between or among those stakeholders and participants.

21
Exhibit 2 shows the 3Cs practised in some countries such as Canada.

Exhibit 2
The 3Cs of Trade Negotiation Consultations The 3Cs also have different
functions. Coordination is more
used internally by the
Coordination government agencies.
Consultation is aimed at the
business community and other
interested stakeholders.
Consultation Communication is primarily for
the general public, especially
those affected by trade
Communication agreements. The 3Cs are
sometimes used
interchangeably by those
stakeholders in the TNC
process.

Coordination With Other Government Agencies at Both Central and Local Levels (Internal
Consultations)

Coordination refers to both the “horizontal” consultation process among relevant government
agencies (e.g., MoT, Foreign Affairs, Ministry of Agriculture) as well as the “vertical” consultation
at different government levels (i.e., central, provincial, and possibly municipal) during the trade
negotiation and coordination process. It also includes coordination between the government
agencies responsible for trade negotiations and the parliament which will ratify the negotiated
trade agreements. The trade negotiation coordination among government agencies (both central
and local) and between the government and parliament is aimed mainly at establishing strong
relationships among those interested government stakeholders, building better understanding
and trust, and facilitating internal consultations. Each government agency has its own interests
and negotiating positions; hence, coordination is the key to bridge all differences and reconcile
their different positions, and finally achieve the winning positions for the country in the trade
negotiation process.

1. Identifying Relevant Government Ministries and Agencies

Before starting the trade negotiation process, the Government of Indonesia needs to map out
certain government agencies that are directly related to such trade negotiations. These
government stakeholders can be identified from the internal discussion among relevant
government agencies. In fact, the selection of government stakeholders for each trade
agreement negotiation depends on the scope, issues, and priorities with the negotiating trading
partners and the chapters or aspects that will be negotiated. As most FTAs include goods (both
industrial goods and agricultural products) and services, relevant ministries such as the Ministry

22
of Agriculture, the Ministry of Industry, and services-related ministries and agencies (e.g., central
bank; the ministries of finance, telecommunications, tourism, and transport) should be identified
as key government stakeholders. In some comprehensive trade agreements, investment,
intellectual property rights, labour, and environment are also included in the negotiations;
therefore, BKPM (the Indonesian Investment Coordinating Board), the Ministry of Law and
Human Rights, Ministry of Labour, and Ministry of Environment should also be invited as key
stakeholders for the trade negotiation and coordination process. If the technical barriers to trade
and SPS measures are included in the negotiation package, Badan Standardisasi Nasional (BSN,
the international organization for standardization in Indonesia) and Badan POM (national agency
of drug and food control of Indonesia) should be also invited to participate in the coordination of
the FTA negotiations.

As trade negotiations have different objectives and modalities, there might be different groups
of government agencies for each trade negotiation. For example, the group of government
agencies for RCEP negotiations might be different from the group of government agencies for
the Indonesia–Morocco Preferential Trade Agreement negotiations, as RCEP is much more
comprehensive and multi-faceted and includes all 10 ASEAN members and other six important
negotiating partners (i.e., China, Japan, Korea, India, Australia, and New Zealand). Therefore,
there should be more government agencies and other stakeholders involved in the RCEP
negotiation consultation process compared with that for the Indonesia–Morocco PTA
negotiations and consultations.

2. Sharing Information—Regular Communications/Meetings With Intergovernmental Agencies,

Local Governments, and the Parliament
Once the Government of Indonesia has identified the related government agencies for trade
agreement negotiations and coordination, it should share the necessary information on trade
negotiations with them for their reference and input. Such relevant information should be shared
regularly, or at the time whenever new information is obtained. Information-sharing could be
through regular briefing meetings by the inter-government agency committee and background
notes and updates of the negotiating status and issues (either internal or online). As well, some
ad hoc workshops and dialogue among central and local government agencies and parliament
could be organized to regularly share relevant information on trade negotiations.

In addition, the government should also provide regular communications and meetings, whether
one-on-one meetings or meetings with all the government agencies, in order to discuss relevant
information on trade negotiations and obtain input from all government stakeholders.

It is also recommended to hold high-level meetings between the ministries or heads of

government agencies, in addition to meetings with working-level government officials. It is also
important for the MoT to conduct regular meetings (online or onsite) with the Indonesian Mission
to the WTO in order to obtain the latest updates on WTO negotiations. For those FTA
negotiations, the chief negotiators for the FTA negotiations could be called upon to provide
regular briefings to those relevant government stakeholders on the current negotiating status

23
and key issues and challenges, and coordinate the negotiating positions with other in-line
ministries, agencies, local governments, and parliament.

3. Preparing Meeting Minutes

For every meeting, minutes of meetings should be properly prepared and circulated in a timely
manner to all participants. The minutes of meetings shall include the following information at a
minimum:

 summary of the presentations and discussions

 questions and answers
 pending issues
 next steps
 deliverables of the participants (what results are expected to be delivered, such as data,
information, position, or others)

All documentation and meeting minutes that have been prepared, obtained, gathered, and
circulated must also be properly filed by each of the participating government agencies.

4. Deciding on the Information to Be Shared

As part of the TNC is to involve more interested participants, during the coordinating meetings
among government agencies, the Government of Indonesia—particularly the MoT—should
decide what information is to be shared. In deciding such information, there are several factors
to consider:

 Relevant information. Whether sharing the information is done in full, in part, or as a

summary, this information should be relevant to address their concerns of the negotiating
issues. Sometimes, trade negotiating information can be confidential; therefore, such
information should be restricted to share with selected government agencies only with
confidentiality among all participants. For general background information of the WTO
and FTA negotiations, both government and other stakeholders could receive such
information and updates on a regular basis.
 Right receivers. Although the information is intended to be shared with government
agencies and parliament, some general and background information could also be shared
with the business community, academicians, non-governmental organizations, or other
stakeholders at the same time.
 Expected feedback. The government should highlight the feedback that it wishes to
receive from the information packages distributed during the coordination process with
central and provincial government agencies, parliament, and other stakeholders.

5. Preparing Government Negotiating Positions

The input that is obtained from regular communications and meetings with relevant government
agencies and other stakeholders are good sources for the Government of Indonesia to prepare
government negotiating positions. It is also important to note who provided such inputs, so if

24
there is an issue during the trade negotiation process, the government can communicate the
negotiating status and results directly with input providers.

Consultation With Private Sector Business Associations, Sectoral Groups, and Other Interested
Stakeholders

Consultations generally refer to the process of two-way communications between governmental

authorities and business associations, sectoral groups, and other interested stakeholders on
trade agreement negotiations. The consultations are mainly conducted to obtain input from the
private sector and other interested groups on the business interests of Indonesia (both offensive
and defensive) in the trade negotiation process, to identify specific issues and challenges faced
by the business community and society for potential economic benefits and costs of trade
agreements, and to receive recommendations from the private sector and other stakeholders on
those trade agreement negotiations.

In Canada, the federal government regularly consults with public and private stakeholders before
trade agreement negotiations in order to identify offensive and defensive trade interests, detect
potential sensibilities, and assess potential overall economic benefits of a new FTA. Consultations
conducted during trade negotiations allow Canadian negotiators to better assess the potential
effect of concessions and whether or not they can make them, improve their understanding of
certain specific technical issues, and receive feedback from domestic stakeholders on actual
offers made by negotiating partners. Canada often continues consultations after the conclusion
of an FTA to ensure an effective and full implementation process.

1. Identifying Relevant Business and Industry Organizations

Consultations with private sector business associations, sectoral groups, and other stakeholders
are a key aspect of the TNC process. These consultations are best conducted after the
Government of Indonesia has shared relevant information with the private sector.

For instance, once KADIN Indonesia has received information from the government, KADIN
Indonesia will first study the information and identify which relevant stakeholders to consult.
Similar to the identifying process in the government agencies, KADIN Indonesia and APINDO will
then consult other relevant private sector business associations and companies to gather input
and feedback on trade negotiations in order to formulate the positions of KADIN Indonesia and
APINDO on behalf of their members.

2. Engaging Academicians and Trade Experts

As private sector business associations focus mainly on the trade and investment interests in
trade negotiations, it is also important for the government to engage academicians and experts
to obtain in-depth input on certain technical trade matters. Some Indonesian academicians and
experts have the capability to identify other matters that the business community might
overlook, such as the economic impact assessment of trade agreements, risk management of
trade negotiations, or even provide forecasts of the gains and losses of certain sectors given
specific trade agreements and their sectoral impacts.

25
By engaging academicians and trade experts, government negotiators, and business associations,
representatives will obtain comprehensive views and input from a wider audience, which can
lead to making better decisions for trade negotiations in order to maximize Indonesian interests.

3. Engaging Other Interest Groups

Certain groups may have special interests in trade negotiations. For instance, trade agreements
will have particular impacts on women. Since women are more engaged in some particular
sectors (e.g., agriculture, services, textiles and clothing), more market access commitments in
those sectors will have positive impacts on women’s employment. Another example is
environmental groups, where modern FTAs negotiate environment and its sustainability in
greater depth, which often leads to a single chapter on the environment under some FTAs.

These interest groups are important for TNCs, as they might have strong positions based on their
long-term views on certain trade-related issues and practices. Hence, consultations with them
must be conducted on a regular basis in order to address their specific concerns.

4. Preparing Research and Position Papers

After the consultations, it is important for private sector business associations and other
stakeholders to present the results of the consultations through their own position papers. That
way, the Government of Indonesia will have clear positions of the private sector and other
interested groups on certain negotiating issues.

Such position papers must be supported by strong justifications and evidence, such as data,
statistics, market analysis, and documented experiences.9

Communication With the General Public, Particularly Those Affected by Trade Agreement
Negotiations

Communication with the general public and the parties affected by trade agreement negotiations
is as important as the other two Cs (i.e., coordination and consultation). Such communication is
necessary on a regular basis to generate their support for trade negotiations and also to design
other relevant economic and social policies and measures to offset potential negative impacts of
trade agreement implementation. These communications will greatly affect the public
relationships between the government and other Indonesian stakeholders, particularly the
business community, labour unions, environmental groups, and other interested parties, directly
or indirectly. The main objective of communication is to have their voices heard and obtain their
input and suggestions (which are often overlooked in Indonesia), and to get their support for
trade agreement negotiations and implementation.

9
For more information, see Callista, Public-Private Consultation.

26
1. Raising Awareness of Interested Parties and the General Public on FTAs and TNCs
Aside from regular communications with interested parties and the general public, it is also
crucial to obtain possible input from selected stakeholders that will be affected by specific trade
agreement negotiations. Having said that, in current practices, there are still many stakeholders
in Indonesia that do not have sufficient knowledge of FTAs and TNCs. This is a big challenge for
the government and the Indonesian business community. For such matters, both the government
and the Indonesian business community will have to take a proactive approach to informing
those stakeholders of trade negotiating issues and the impacts on them. Such actions can be
carried out through various forms of capacity-building, such as seminars and workshops.

It is also crucial to communicate with the Indonesian media about trade agreement negotiations.
The media include newspapers, magazines, news bulletins, and online news services, etc. These
media play an important role in communicating with the general public and interested parties on
the impacts of trade agreement negotiations and implementation. As a result, it is important to
provide the media with factual information on the current trade agreement negotiations in the
hope that they will communicate the information to the general public in an effective and
accurate manner.

2. Gathering Input/Concerns From Affected Stakeholders

During or after capacity-building activities, the government and the Indonesian business
community can also start gathering input or concerns on certain matters of trade negotiations
from affected stakeholders and the general public. It is important to hear their concerns. With
limited trade knowledge, they might not be aware of the negative impacts of trade agreements
on them and the solutions to mitigate such negative effects.

Additionally, input-gathering and follow-up actions must be conducted regularly (before, during,
and after trade agreement negotiations). Certain communication mechanisms need to be
established by the government, together with the business community and the affected
stakeholders. (See “Instruments and Resources for Trade Negotiation Consultations.”)

3. Generating Support From Stakeholders

Communications with the general public are aimed at creating strong support from them on
trade agreement negotiations. In most cases, the general public has little knowledge of trade
negotiations and does not feel it needs to be comprehensively consulted, so it is less inclined to
give full support to trade negotiations.

By maintaining good and regular communications, stronger relationships could be built among
the government, the business community, and the general public on trade agreement
negotiations and implementation. That way, government and the business community might
have more support to move forward with trade negotiations and implementation.

27
Three Stages of Trade Negotiation Consultations

In Canada and other developed economies, TNCs do not take place during the actual negotiation
rounds only. Canada has three distinct phases where TNCs are conducted before, during, and
after the trade negotiations. Indonesia may learn the practices of Canada and other developed
countries to conduct three-stage trade negotiation consultations.

Before the Trade Negotiation Launch: Getting Prepared

Before any trade negotiations, the government and other Indonesian stakeholders should
endeavour to map out the main opportunities and challenges related to trade relationships with
trading partners. The followings are key actions:

 First, the Government of Indonesia may take the first initiative by conducting studies,
such as a feasibility study to map out sectors of high interest and identify challenges, and
an impact assessment (regulatory, economic, environmental, social, and others). The
studies may be conducted with internal sources only, or with external sources such as the
business community, academic institutions, and individual experts.

 Second, key business associations, such as KADIN Indonesia and APINDO, relying on their
memberships, are better positioned to find out the most promising trade and investment
opportunities for domestic exporters and investors. This should be done before, but also
continue during the negotiation process. For example, in Canada, the Canadian Agri-Food
Trade Alliance prepared a briefing note on a potential Canada–India CEPA that pointed
out that a new agreement could make India one of Canada’s top five agri-food export
markets. 10 To do so, a CEPA would have to expand the range of Canadian products
exported to India with the elimination of tariff and non-tariff barriers imposed by India.11

 Third, the Indonesian private sector’s knowledge of cross-border procedures is useful for
identifying bottlenecks, the most irritating non-tariff barriers, and other red tape. Overall,
the most critical phase for business associations is to ensure that the voices of potential
winners as well as losers of future FTAs are heard by Indonesian government negotiators
before the trade negotiations. This ensures that Indonesian officials and negotiators have
a solid understanding of the private sector’s offensive and defensive interests.

In addition, the Government of Indonesia, KADIN Indonesia, and APINDO, as well as other
interested Indonesian stakeholders should also involve academicians and some trade experts
during the preparation of trade negotiations. The main reason for having academicians and
experts engaged is to have as broad views as possible before the launch of trade negotiations.
Their views and research are important and should not be overlooked.

10
Canadian Agri-Food Trade Alliance, Canada–India Comprehensive Economic Partnership.
11
Ibid.

28
During the Trade Negotiation: Actively Engaged

As the government is the only party allowed to sit around the negotiation table and negotiate on
behalf of the country, the consultation during the trade negotiations should be first initiated by
the government itself. Depending on the situation of each trade negotiation round, there are
several ways in which the TNCs may take place:

 Sharing information that is not confidential with other Indonesian stakeholders. It is

understood that some information being discussed during the negotiation may be
confidential. However, there is also some information that could be shared with
Indonesian stakeholders for quick reference (e.g., possible increased quota for Indonesian
workers in the services sector is being negotiated under the General Agreement on Trade
Services [GATS] Mode 4). To ensure smooth implementation of this information-sharing
with other Indonesian stakeholders, the government may request an agreement from the
negotiating partners.

 Sharing only specific information on certain issues to relevant Indonesian stakeholders.

In addition to sharing non-confidential information, the government may share
confidential and specific information with selected Indonesian stakeholders only. For
instance, senior KADIN Indonesia and APINDO representatives could be invited to share
some confidential negotiating information on the condition of strict confidentiality. The
specific issues regarding environmental and sustainability matters may be shared with
limited groups, such as the environmental community and relevant business
communities.

 Conducting small group discussions with Indonesian stakeholders. During one of the
CEPA negotiations with the EU, there were a few Indonesian business representatives
coming to the negotiation venue in Indonesia. In cases such as this, the government may
take the initiative to hold a small group discussion to talk about the issues and the
progress of negotiations. In fact, it may invite the business community to attend such
group discussions.

It is important for Indonesian stakeholders to stand ready to provide technical and policy advice
to trade negotiators, as private operators are often the best experts to deal with specific trade
and investment issues. In addition, Indonesian stakeholders must also monitor the negotiations
to keep their members or stakeholders informed of the progress (or lack of, leading to a deadlock
in the negotiations). Reporting back to their members is essential as domestic businesses will be
most affected by the negotiations’ outcomes, and they may not have enough human resources
or time to monitor the negotiation process themselves. For instance, Volpe reported on how the
Automotive Parts Manufacturers’ Association (APMA) of Canada provided regular updated
information to its members on how negotiations were progressing and the impact on the North
American auto industry in APMA’s official publication Lead, Reach & Connect.12 If negotiations

12
See, for example, Volpe, “From Nation to Nation.”

29
do not go as expected, the private sector can build domestic or international pressure to
influence the trade talks in a way that is more aligned with its stakeholders’ interests.

After the Trade Agreement Is Reached: Ensuring Smooth Implementation Through Follow-Up
Consultations and Communications

The role of the private sector does not end once a trade agreement is reached. At the conclusion
of a new trade agreement, the government will need to move fast to ensure prompt signature
by the Minister of Trade, or the head of government or state, and then quickly take steps to ratify
and undertake the implementation process, which can be lengthy. The private sector has an
interest in ensuring that this process goes as smoothly and efficiently as possible.

One of the 3Cs elaborated above, communications, plays a vital role in ensuring smooth
implementation through follow-up consultations. By conducting such communication, the
general public will be made aware that a trade negotiation has been concluded, and that signing
as well as the ratification progress are up on the pipeline. Support from the general public is very
important, especially for the ratification process at the parliamentary level.

Business associations should offer support to government authorities at each step. First, the
private sector should react to the conclusions of a new trade agreement. Publicly demonstrating
support can contribute to social acceptability of trade agreements among the broader
stakeholders and general population. For instance, in Canada, the Ukrainian Canadian Congress
made a public declaration welcoming the new Canada–Ukraine Free Trade Agreement (CUFTA),
calling it an “historic deal, a win-win” for the two countries.13 It is also important to ensure that
interested stakeholders are aware of the preferential treatment under the FTA so they can to
take advantage of the market access and investment opportunities.

Business associations and civil society groups must also spread the news, whether it is beneficial
or detrimental to particular stakeholders. In the case of bad news for stakeholders, the
association can pinpoint the problematic issues and provide solutions, such as asking for
compensation for negatively impacted sectors. For example, in 2014, when Canada and Korea
reached an FTA, Canada’s largest private sector union criticized the deal, and suggested key
provisions that should be included to ensure “fair and mutually beneficial” bilateral trade,
especially for the auto sector.14 Although the negotiations were over, such criticisms can be taken
into consideration for future implementation measures or other domestic industrial policies
affecting the “losing” sectors.

At the later stage of implementation, the private sector is expected to provide comments on the
laws and regulations necessary to implement the trade agreement. Keep in mind that an FTA sets
general obligations, but governments still retain some flexibility and full public policy powers

13
Ukrainian Canadian Congress, “UCC Welcomes Signature.”
14
Unifor, “Canadian Auto Industry.”

30
when it comes to implementation. That means that the government will seek ideas to design the
best policy options to reap benefits of the new FTA.

In the case of persisting problems at the border, or continuing discriminatory measures applied
by the trading partners, private stakeholders should promptly notify the government in order to
find solutions. In Canada, businesses often communicate implementation problems to the
government, and may even do so publicly. For instance, as the Canada–EU CETA was delayed and
about to partially enter into force, lawyers quickly spotted initial challenges and disputes that
could potentially arise with regards to agricultural product importation, remaining non-tariff
barriers like labelling and packaging, and safeguards on steel products. 15 Here again, regular
public-private dialogue is the key.

Instruments and Resources for Trade Negotiation Consultations

Successful TNCs are a combination of many factors. One of the most significant is to effectively
use the instruments and resources of stakeholders and participants. This section will explain the
selected instruments and resources to conduct fruitful TNCs.

Select Instruments and Mechanisms for Trade Negotiation Consultations

The following instruments could be considered to facilitate TNCs in Indonesia. They are used in
Canada for TNCs between the Government of Canada and other Canadian interested
stakeholders:16

TNC Website
It is important to create a dedicated TNC website at the MoT which can be the main and official
website for TNCs. This website will be operated and managed by the Government of Indonesia
(through the MoT as the lead negotiating agency). The Indonesian government should publish
relevant, non-confidential, FTA-related information in a concise, simple, and timely manner to
ensure complete understanding by the Indonesian private sector and other stakeholders on the
status and progress as well as the key issues of the trade negotiations.

The dedicated website should be transparent, consistent, reliable, and accessible by all interested
parties in Indonesia that wish to share their views, as well as provide opportunities for any
interested parties to comment on all relevant issues and submit their views and opinions and
even position papers. The website could be initially in Bahasa Indonesia.

Other Electronic Means

Other electronic means include e-mail, online consultations, surveys/questionnaires, and social
media (e.g., Facebook, Twitter, Instagram). Although these instruments are not considered to be

15
Todgham Cherniak, “What Might Be.”
16
Callista, Public-Private Consultation.

31
official, the Government of Indonesia might find them efficient and effective in gathering various
views and spreading information quickly. Most Indonesian stakeholders often use social media.

In today’s globalized world, these electronic means offer flexible, fast, and cost-effective
communications on FTA negotiations and consultations.

Meetings and Conference Calls

In addition to the two above indirect means, the government and other Indonesian stakeholders
should also hold direct meetings and conference calls. With direct communications, these
instruments could also lead to strengthened relationships and mutual trust between the
government and other interested parties for trade negotiations and consultations.

The important consideration in these activities is the availability of key stakeholders, and the
government and other Indonesian key stakeholders should make themselves available whenever
they are urgently needed for the consultations. Meetings and conference calls might also take
place on a regular and/or ad hoc basis.

Open Consultations
Open consultations are activities such as public seminars and workshops, which normally involve
a wide range of stakeholders and participants. These consultations can be initiated and organized
by either the government or other parties, such as private sector business associations and
academicians. Open consultations are good for attracting public attention on certain negotiating
issues, to inform the general public of the information on trade negotiations, and to obtain quick
feedback directly from those stakeholders and participants. (See “Good Trade Consultations.”)

Good Trade Consultations

It is important to note that the above instruments for TNCs are best used before, during, and
after each negotiation round. Good trade consultations should always be two-way streets (i.e.,
the Government of Indonesia provides information and requests inputs from the private sector
and other stakeholders, while Indonesian stakeholders also provide information and request the
status and progress of trade negotiations).

Source: Authors’ compilation.

However, not all instruments must be used simultaneously. The government and other
Indonesian stakeholders should decide on the most workable and suitable instruments before,
during, and after trade negotiations.

For example, before the negotiation is launched, the government may decide to hold an open
consultation to better obtain wider views from interested Indonesian stakeholders. During the
negotiations, the government may initiate a conference call if there are specific issues that will
have a direct or indirect impact on certain businesses. After the negotiation is concluded, the

32
government may decide to upload public information on the TNC website and use electronic
means to disseminate such information.

Suggestions for TNCs

1. Invest in Human Resources

The MoT has a big team available for trade negotiations. However, many new staff have been
recruited in recent years. Therefore, it is important to build the capacity of the negotiating team
of the MoT and other relevant ministries on trade negotiations. Currently, the MoT has no
dedicated team for TNCs. The TNCs are conducted directly by the chief negotiator and the team
on an ad hoc basis, due to numerous trade agreements that Indonesia is currently negotiating
with other trading partners. There are also some trade agreements completed and some under
preparation. All of these require investment of human resources in the MoT and other relevant
government agencies.

The government is trying to build its capacities quickly to help those young trade negotiators who
are not familiar with the TNC process and procedures. Compared with the government, lack of
financial and human resources is a common challenge for business associations and other
interest groups. In fact, very few business organizations have the capacity to set up a large team
of experts, lawyers, and economists working on international trade agreements. Most business
associations dedicate a limited number of staff members to public consultations and trade
agreement negotiations. The golden rule is to invest in quality staff, rather than quantity. In
Canada, most of the business organizations surveyed for a recent study noted that they have one
full-time employee working on international affairs and advocacy, or several part-time people
occasionally working together to produce position papers on specific free trade initiatives.17 For
example, the Canadian Chamber of Commerce has 11professional staff members working on
policy and advocacy issues, but only one person is dedicated to preparing position papers on FTA
negotiations, coordinating with members on international affairs issues, and participating in
public-private consultations on trade agreements.18

An alternative solution may be to rely on external consultants, sometimes academics, to prepare

more technical reports. However, this option can be costly and financially unsustainable for
smaller business associations. Another option is to rely on members’ expertise and in-kind
contributions. For example, a chamber of commerce may collaborate with one or two law firms
to publish an article analyzing the impact of an FTA liberalizing trade in services in the legal
services sector. This kind of win-win collaboration showcases members’ skills and knowledge and
offers visibility to the organization as a whole.

Investing in human resources must be conducted by both the government and Indonesian
stakeholders, particularly the business associations (KADIN Indonesia and APINDO). FTA

17
Callista, Public-Private Consultation.
18
The Canadian Chamber of Commerce has a Director, International Affairs. Information obtained from
interviews with CCC.

33
negotiations are temporary and might conclude anytime in the near future. However, the
implementation of such FTAs is long term. Investing in human resources is important to secure
FTA negotiations and ensure smooth implementation upon ratification of these trade
agreements.

2. Monitor International Trade Negotiations

Any international trade advocacy strategy should include close monitoring of current
international trade negotiations. In fact, monitoring FTA negotiations at the bilateral, regional,
and multilateral levels is an essential first step for both government and private sector groups
before getting involved in TNCs for any FTA negotiations.

Although WTO negotiations in the Doha round framework have not been progressing much, both
the government and business associations should keep an eye on what is discussed at the
multilateral level. Certain initiatives originating from the WTO may, if adopted, have a significant
impact on Indonesia’s private sector. For example, the WTO Trade Facilitation Agreement,
adopted in Bali in December 2013, includes mandatory provisions to improve regulatory
transparency and to simplify cross-border procedures. It encompasses close collaboration
between government and the private sector through consultations, and by setting up a national
trade facilitation committee. Information about the WTO treaties, structure, definitions of legal
terms, and multilateral negotiations can be found on the WTO website, and most draft
negotiation texts and countries’ proposals are made available on the site.19

As Indonesia has been particularly active with its ambitious international trade negotiation
agenda, both government negotiators and business association representatives must follow
bilateral FTA initiatives meticulously. In fact, forming a dedicated team to monitor these FTAs is
important for both the government and interested Indonesian stakeholders; the team members
may be composed of only one to three persons. It is also good to engage academicians and
experts, either as team members or as external sources.

Fortunately, useful free online tools are available. One of the most valuable sites is
http://www.bilaterals.org, which provides information on bilateral trade and investment deals
outside of the WTO. This website is a platform for sharing information (in English, French, and
Spanish), as well as sometimes leaked FTA texts, final agreements, news articles, and op-eds on
the launch and progress of trade negotiations. It includes a dedicated page on Indonesia, which
mentions recent agreements concluded with Japan and Pakistan as well as current negotiations
with Australia, Chile, and the European free trade area.20

CUTS International is another useful tool for keeping informed on international trade
negotiations. Originating in India, CUTS International (with an office in Geneva) is a non-
governmental organization that “catalyzes the pro-trade, pro-equity voices of the Global South

19
World Trade Organization, “The Trade Negotiations Committee.”
20
Bilaterals.org, “Indonesia.”

34
in international trade and development debates.”21 It regularly publishes reports, papers, and
newsletters to keep its stakeholders informed of WTO negotiations and conferences, as well as
topics such as trade in services, value chains, and regional integration. CUTS also offers trade-
related training programs online.

3. Communicate With Key Stakeholders

An efficient and comprehensive international trade advocacy strategy must include a
communications component. Both government and business associations must reach out to all
key stakeholders in order to have their voices heard during the TNC process.

Members or Direct Stakeholders

MoT needs to coordinate Indonesia’s negotiating positions with other in-line ministries/agencies,
the provincial counterparts, and parliamentarians, as well as with the private sector, civil society,
and other key stakeholders.

KADIN Indonesia, APINDO, and other business associations must first reach out to their members
(or direct stakeholders). In fact, knowing the members and maintaining a permanent dialogue
with them is a prerequisite for building and establishing the associations as credible counterparts
to the government. The government seeks input and comments from business associations that
can demonstrate that they are connected to SMEs, traders, and key sector operators that they
cannot otherwise access. In this context, proactive and dynamic business associations
communicate regularly with their members to ensure that their positions remain in line with
membership’s needs and priorities. To do so, business associations organize frequent in-person
meetings and phone calls to consult and “pick their brains” on ongoing trade negotiation issues.

Both government and business organizations must inform their key stakeholders about current
and upcoming trade negotiations, educate them about the pros and cons of FTA negotiations,
and popularize and disseminate clear and jargon-friendly information about the technicalities of
trade agreements. This can be done through various means of communication. For instance,
several Canadian business associations mentioned that they have been sending “restricted”
newsletters to their members with insider information on discussions with the government on
trade negotiations.22 This is a low-cost and easy communication solution that their stakeholders
appreciate.

Another option is to organize knowledge-sharing events on international trade agreements

jointly organized by the government and private sector business associations. These can take
place during the negotiations to raise public awareness on the potential impacts of a specific FTA,
or after the negotiations have concluded to share information on the new opportunities and
challenges created by the trade agreements. It can also be a good opportunity for government
officials, including trade negotiators and/or business association spokespersons, to explain the

21
CUTS International Geneva, “Who We Are.”
22
Interviews with business associations during the internship of Jessica Callista. Details can be found in
Callista, Public-Private Consultation.

35
collaborative work undertaken during the trade negotiations. For instance, in Canada, the
Chamber of Commerce of Metropolitan Montreal organized a large-scale event with political
leaders (Premier of Quebec, Prime Minister of Canada, and Prime Minister of France) to discuss
business opportunities arising from the newly concluded CETA. Businesses and other affected
stakeholders may want to attend such events in order to ask questions and discuss their positions
with presenters.23

Government Authorities and Agencies

The government and the private sector organizations should keep communication channels open
with each other on TNCs. The ultimate objective is to build a solid, trust-based partnership
between the government and the private sector. This takes time and effort. Thus, it is advisable
for the government and business associations to work together and to use every occasion to
engage in consultations on FTA negotiations. Business associations should endeavour to be as
responsive as possible when government officials ask for information or comments. This can be
done by accepting meeting requests, either in person, by phone, or online, which will help
maintain a positive relationship.

In Canada, the private sector and civil society representatives are often invited to appear before
parliamentary committees, including the Standing Committee on International Trade. 24 For
instance, when the Senate Standing Committee on Banking, Trade and Commerce conducted a
study on issues facing Canadian importers and exporters in North American and global markets,
key Canadian business organizations, such as the Canadian Chamber of Commerce, Canadian
Manufacturers and Exporters, the Business Council of Canada, and the Canadian Association of
Importers and Exporters, participated and provided inputs. Presenting reports, position papers,
or other testimonies before parliamentary committees can be part of a broader advocacy
strategy and can directly influence policy-makers and lawmakers.

Keep in mind that free trade negotiations happen behind closed doors, and that leaking first-
hand information or draft texts can derail the negotiation strategy and tactics. Therefore, it is
imperative to respect secrecy if the negotiators share confidential information with the private
sector and other selected stakeholders. In Canada, selected members from the private sector
and other groups who will be given confidential information normally have to sign a
confidentiality clause before they attend the meetings.

The General Public

Both government and business associations should not ignore the general public in the TNC
process. At times, the general population may feel that government and businesses have
different interests in international trade negotiations. This may trigger higher protectionist

23
Callista, Private-Public Consultation.
24
“Committees examine, in small groups, selected matters in greater depth than is possible in the House
of Commons. They report conclusions of those examinations, and recommendations, to the House.
Committees undertake studies on departmental spending, legislation, and issues related to their
mandate.” House of Commons Canada, “List of Committees.”

36
sentiments. Explaining the government and business positions on trade negotiations may help to
gain public support, or at least mitigate anti-trade sentiment reactions from the general public.
Business associations should not ignore the importance of public relations. In this case, the media
have an important role to play. Therefore, selected media should also be involved in the trade
consultation process.

To reach out to the general public, both the government and business associations can use a
variety of communication channels and tools. In Canada, both government and business
organizations make their position papers available online. They also go to the traditional media
by giving TV, radio, and written media interviews to explain their positions in a jargon-free
manner, and to talk about potential benefits of free trade for workers, consumers, and the
domestic economy in general. Canadian business associations also use modern communication
channels such as Facebook, Twitter, LinkedIn, and YouTube to disseminate their messages. For
instance, the Canadian Chamber of Commerce published an online video on YouTube 25 that
summarizes the key recommendations of a report titled 10 Ways to Build a Canada That Wins.26
The Government of Indonesia and the private sector business associations may learn those best
practices from Canada to strengthen the TNCs in Indonesia and build good partnerships between
the government and other stakeholders on trade negotiations and consultations.

25
See the Canadian Chamber of Commerce’s video, “10 Ways to Build a Canada That Wins.”
26
Canadian Chamber of Commerce, 10 Ways to Build a Canada That Wins.

37
Part II: How to Prepare Trade Negotiation Position Papers

Why Position Papers Are Needed in Trade Negotiations and Consultations

What Is a Trade Negotiation Position Paper?

A trade negotiation position paper (TNPP) is a written essay or article that presents an arguable
opinion about an international trade negotiation issue (or a group of issues) prepared in the
context of the consultations of bilateral, regional, or multilateral trade negotiations. TNPPs can
be prepared by government agencies, private sector business associations, academia, and other
interested groups throughout the preparation and negotiation processes of trade agreements.

Some government TNPPs are presented and submitted to the WTO and other trading partners
during trade negotiations. Others are prepared by private sector and other interest groups and
published on the websites of their respective organizations or in academic journals and/or
circulated to their members or to the public.

TNPPs have no standard formats and templates. They can range from a simple format of a “op-
ed” on one single trade negotiating issue, to a more complex trade TNPP in the form of academic
research (which may include multiple trade negotiating issues in FTA negotiations), or to a
comprehensive TNPP that covers the entire trade agreement. Most TNPPs, particularly those
from the private sector and interested groups, tend to focus on a few specific trade negotiating
issues, as they wish to make their points clear and understood about their positions.

Business associations and interest groups would most likely publish their TNPPs on their websites
and share their TNPPs with their members and other stakeholders in order to get them united
on their positions. However, in certain cases, TNPPs can be prepared for restricted distribution
or confidential purposes, if they deal with sensitive trade and political issues.

Although there are no standard formats, TNPPs should be made clear and straightforward to
ensure good understanding by interested stakeholders. A good TNPP should cover the following
important elements, if possible:
 background information and facts of the selected topic(s)
 supporting data and information through research
 analysis to support your positions
 counter arguments against other positions
 recommendations and follow-up actions (if applicable).

From the government’s perspective, a TNPP may take different forms, depending on its purposes.
First, the government can submit a TNPP to the WTO, or other trade negotiation forums, which
can be regional organizations such as the Asia-Pacific Economic Cooperation (APEC) and ASEAN.
The government may also want to communicate its trade negotiating positions to potential or
current FTA negotiating partners to inform or convince them to consider or accept the proposed

38
negotiating positions. For example, Indonesia submitted several negotiating TNPPs to the WTO,
either on its own or with other groups, during the Doha Development Agenda negotiations.

A government can also use TNPPs to convince domestic stakeholders about its positions on
specific negotiating issues with trading partners, either in WTO or FTA negotiations. In this case,
the TNPPs could be published on a government website or circulated to key stakeholders before
major TNC events. Under the current TNC mechanism in Indonesia, the MoT sometimes prepares
TNPPs to communicate with other stakeholders on WTO and FTA negotiations. However, these
TNPPs are not yet systematically published in the public domain for comments and inputs.

In addition, a government agency can also prepare an internal TNPP on one or more specific,
sometimes sensitive or controversial, trade negotiating issues, to coordinate with other in-line
ministries or local government authorities to align negotiating positions and formulate a national
stance. In this case, TNPPs are normally confidential and shared only with those relevant
government agencies. If a national position is formulated, the government can modify the TNPP
and submit it to the WTO and other negotiating forums to advance its negotiating positions, or it
can publish a non-confidential part of the TNPP in a public domain to communicate with relevant
stakeholders on those issues.

From the private sector business associations’ perspective, two types of TNPPs are commonly
used:

1. Internal TNPP. Business associations can prepare a TNPP on a particular topic (or topics)
to advance the best interest of their members. In order to conduct an internal
consultation with members, an internal TNPP can be prepared and circulated to selected
members. In this case, the draft TNPP is kept confidential for the selected members only,
and should be adjusted to consolidate their inputs before the final TNPP is communicated
to government negotiators and policy-makers.

2. Consolidated TNPP. Once their positions are consolidated, the business associations
could present or submit their TNPPs to the government as well as publish the position
papers on their website or news bulletins in order to reach out to other stakeholders.
These TNPPs could also be presented at national or international gatherings to have their
voices heard during the TNC process.

KADIN Indonesia and APINDO are very active in communicating with their members on trade
negotiating issues and with government negotiators to advance their negotiating positions
during WTO and FTA negotiations. However, other small sectoral business associations, SMEs,
and women’s business groups are less active in advancing their positions to the government and
to their members, primarily due to low awareness on trade negotiation issues and more limited
financial and human resources.

Some academic institutions may also prepare TNPPs. For example, some Indonesian university
professors, researchers from the Centre for Strategic and International Studies (CSIS), other

39
trade-related policy think-tanks, and a few law firms regularly prepare and publish some research
and legal papers on trade negotiations. These TNPPs normally include statistical data and impact
analyses to substantiate the opinions or negotiating positions of Indonesia or a group of countries
with common trade interests (e.g., ASEAN). Indonesia should make good use of its academic
institutions and researchers to advance its positions on trade negotiations and consultations.
Some law firms also use an aide-mémoire to set forth some key points of a proposed discussion,
agreement, or disagreement to communicate their positions, including trade negotiating
positions for the country.

Business associations representing SMEs, women’s-owned/operated businesses, and vulnerable

groups, such as seniors, youths, and Indigenous people, do not normally participate in trade
negotiation consultations, as they may not have the capacity to analyse and fully assess the
positive or negative impacts of the WTO and FTAs on their stakeholders. The Government of
Indonesia and key business associations (e.g., KADIN Indonesia and APINDO) should take this into
consideration when they formulate their negotiating positions, by involving these groups as
much as possible in the TNC process and integrating their views into common TNPPs for
Indonesia.

Purpose of TNPPs
Why do governments, private sector associations or companies, and other interest groups
prepare TNPPs? (See “Why Prepare TNPPs?”)

Why Prepare TNPPs? [Text box heading]

TNPPs seek to influence or convince their trade partners and their audience (other interested
parties) that the position presented carries valid points supported by facts and technical
information, which should be taken into consideration for trade negotiations or is worth listening
to by other trade partners for advancing trade negotiations and reaching a satisfactory
negotiation outcome.

Source: Authors’ compilation.

To convince other negotiating partners and diversified stakeholders to accept the arguments in
a TNPP, it is crucial to choose a right topic, to present innovative ideas, to develop convincing
arguments, and to organize your ideas throughout the TNPP.

A TNPP normally supports one side of an issue, similar to an argument or a debate. Therefore, a
TNPP aims to do the following:

 Provide convincing evidence and arguments. You are trying to use the TNPP to convince
your readers that your position is a correct or most desirable one relating to a selected

40
 trade negotiating issue. Quite often, trade negotiations include many issues that are
directly or indirectly linked.

Therefore, a good TNPP should focus on one or two selected issues that may be closely
linked with other trade negotiating issues. In this case, the important message of a TNPP
is not only to make or defend your own negotiating position on a specific negotiating
issue, but also to show how your position is linked with other negotiating issues
(positions) so that other trading partners and stakeholders may consider or accept your
positions since their positions and issues are also considered by your TNPP.

 Advance the government’s negotiating positions. Indonesian government negotiators

can use TNPPs to advance their negotiating positions with other negotiating partners
during WTO and FTA negotiations. They can also use TNPPs to consolidate Indonesian
negotiating positions on the selected negotiation issues in consultation with other
Indonesian stakeholders and interested groups during WTO and FTA negotiations.

 Advocate for private sector interests. Private sector business groups such as KADIN
Indonesia and APINDO could use TNPPs to communicate with government negotiators
and other stakeholders and advocate the business interests in multilateral, regional, and
bilateral trade negotiations. Other interest groups also can take the opportunity to
prepare TNPPs to advance (or defend) their interests in the trade negotiation process.
This is an important and useful tool of communication during the TNC process.

In Canada, Global Affairs Canada (GAC), the lead department responsible for trade negotiations
and consultations for the country, normally prepares TNPPs and publishes them on its website
for TNC purposes. For example, Canada published a lot of TNPPs on the WTO services
negotiations after 2000. Recently, Global Affairs Canada has published Canada’s official positions
on some important trade topics on its website. These include goods, services, investment,
intellectual property, dispute settlement, government procurement, trade and environment,
trade and gender, etc.27 The purpose of publishing TNPPs is to provide background facts on those
negotiating topics and to encourage Canadian stakeholders to actively contribute to the TNC
process. For every trade agreement, Global Affairs Canada is obligated to establish a consultation
mechanism to generate the inputs from Canadian stakeholders on the proposed trade
negotiations. For example, Canada is currently conducting consultations toward a Canada–India
Comprehensive Economic Partnership Agreement and compiled the questionnaire for interested
Canadian stakeholders to generate input and feedback.28

Private sector and other business groups also prepare and/or publish their TNPPs. The purpose
of these TNPPs is to advance their export interests or to seek possible protection from the
government during the TNC process. In Indonesia, KADIN Indonesia and APINDO are preparing

27
See Global Affairs Canada, “Trade Topics.”
28
See Global Affairs Canada, “Consultations Towards a Canada–India Comprehensive Economic
Partnership Agreement.”

41
some TNPPs to advance the interests of their members. However, sometimes it is difficult for
business associations since their members may have diversified interests in trade negotiations—
some would like to have more market access opportunities, while others may seek more
protections if they are less competitive in the international marketplace. In this case, KADIN
Indonesia, APINDO, and other sectoral business associations will have to conduct detailed
consultations with their members in order to assess the overall impacts of the proposed trade
negotiations on their members and formulate the positions on specific negotiating issues. In the
end, the overall national interest should prevail in the TNC processes.

Types of TNPPs

TNPPs Prepared by Different Types of Stakeholders

There is no single format or template for TNPPs. Some TNPPs are prepared by governments, some
by business associations, some by non-governmental organizations and other interested groups,
and some by the media and experts. Depending on the objectives of each position paper, the
organizations you are associated with, and the target audience, you can write different types of
TNPPs in the TNC process.

TNPPs Prepared by Government Agencies

Many government agencies, particularly those directly responsible for trade negotiations,
prepare TNPPs from time to time. There are generally three types of TNPPs that government
agencies prepare, depending on the purposes and audiences of the TNPPs.

1. For Official Submission

This type of TNPP is usually communicated officially with trade partners during the trade
negotiation process. If it is a WTO negotiation, the TNPP can be submitted to the WTO
Secretariat and circulated to other WTO members. If it is an FTA negotiation, the TNPP
can be shared with your FTA negotiating partner(s). This type of TNPP can also be
published through official communication channels, such as websites and newsletters.
Sometimes, government TNPPs are confidential for the time being because they cover
some sensitive negotiating issues. These are communicated with the negotiating partners
only for the purpose of better understanding the sensitivity of the issues involved and
attempting to convince the negotiating partners to consider or accept the proposed
negotiating positions. For example, in 2017, Indonesia submitted its position paper on
fishery subsidies to WTO to advance the fishery subsidy negotiations and to protect
Indonesia’s interests in the area.29

2. For Public Communication

The second type of government TNPP is usually a public communication tool to officially
publish the government position on certain trade negotiating issues with domestic and
international stakeholders, particularly the business community and other interest

29
See World Trade Organization, “Proposed Disciplines on Prohibitions and Special and Differential
Treatment for Fisheries Subsidies.”

42
 groups. For example, Global Affairs Canada constantly publishes its TNPPs on its website
and in the Canada Gazette. Sometimes, other government agencies also publish TNPPs in
the areas of responsibility. For example, Department of Finance published a position
paper on safeguards to prepare for multilateral trade negotiations in March 1999.30 The
EU and the U.S, are also frequently preparing and publishing some TNPPs to advance their
negotiating interests.

3. For Internal Consultation

The third type of TNPPs prepared by government is typically for internal consultation,
either among government agencies (both central and local) or between the government
and business/other interest groups, on selected sensitive trade negotiating issues.
Sometimes, government agencies use TNPPs to inform other government and private
sector stakeholders of some sensitive issues in the TNC process. The purpose of such
TNPPs is to obtain the views and opinions of other stakeholders and consolidate
negotiating positions before they can negotiate with their trading partners. This type of
TNPP can be very informal but is strictly confidential since it is conducted internally only.

Two examples of government TNPPs prepared by the European Commission, both of which are
public documents posted on their website, are shown in Exhibit 3. The first is a comprehensive
position paper that covers all negotiating issues between EU and Canada during the CETA
negotiations, while the second is more specific to cover the raw material and energy issue during
the feasibility study of the proposed EU–US Transatlantic Trade and Investment Partnership
(TTIP) negotiations. These two examples belong to the second type of the TNPPs as described
above.

30
Department of Finance, Preparations for Multilateral Trade Negotiations.

43
Exhibit 3
Public Documents Posted on the European Commission Website

The European Commission’s Position on the EU–US Transatlantic Trade and Investment
Trade Sustainability Impact Assessment Partnership: Raw Materials and Energy
(SIA) of EU–Canada CETA (Initial EU Position Paper)

Source: European Commission.

TNPPs Prepared by Private Sector Business Associations

Private sector business associations and their members have a vested interest in the outcomes
of any trade negotiations between their countries and other trading partners. They are normally
engaged with their governments to firstly know the issues that are being negotiated, and later to
propose their positions in an attempt to have their voices heard and to advance their interest in
the trade negotiation process. There are two types of trade negotiation papers prepared by
private sector business associations.

44
1. Internal Communication With Members
The first type of private sector TNPPs is normally an internal communication paper prepared for
their members before consultation with the government. This can be a background note or
internal memo to provide the background and facts of the proposed trade agreement
negotiations (e.g., WTO or FTAs) and highlight the issues and potential impacts of the trade
agreement negotiations on the country’s economy in general or on their members’ businesses in
particular. The purpose of this type of draft position paper is to obtain the opinions and feedbacks
of their members and to consolidate the final position of the business associations on the
negotiating issues in order to finally communicate with government negotiators.

2. Formal Submission to Government

The second type of private sector TNPPs is a formal submission to the government from the
private sector business associations or a public position paper posted on the website. This type
of TNPP is usually prepared after internal consultations with members after they have come up
with consolidated views and positions on certain trade negotiating issues. This type of private
sector TNPP can focus on one or a few specific trade negotiating issues or cover the entire trade
agreements comprehensively. The overall objective of this type of TNPP is to have voices of the
private sector heard and to provide input to government negotiators. Occasionally, private sector
business associations may decide to submit their TNPPs to the government on selected sensitive
issues in confidence so that they can conduct internal consultations with the government on their
positions.

The following are two examples of private sector TNPPs prepared by the business associations of
Canada and Indonesia. During the consultation process of Canada–ASEAN Free Trade Agreement
consultations, the Canadian Manufacturing and Exporters Association submitted its position
paper to the Government of Canada. During the consultation process of the Indonesia–EU CEPA,
APINDO prepared and submitted a comprehensive position paper that covered goods, services,
agriculture, investment, government procurement, and capacity-building issues. 31 (See
Exhibit 4.)

31
Asosiasi Pengusaha Indonesia, APINDO Position Paper on Indonesia-European Union (EU).

45
Exhibit 4
Private Sector TNPPs of Canada’s and Indonesia’s Business Associations

APINDO’s Position Paper on EU–Indonesia Canadian Manufacturers & Exporters:

CETA Canada–ASEAN

Sources: Canadian Manufacturers & Exporters; Canada’s Association of IT Professionals.

As national business associations (e.g., KADIN Indonesia and APINDO, Canadian Manufacturers
& Exporters Association, Canadian Chamber of Commerce), the intention may be to prepare
comprehensive TNPPs to cover the proposed FTA negotiations. However, some sectoral business
organizations may be more interested in preparing their TNPPs to focus only on their specific
sectoral issues. For example, Canada’s Association of Information Technology Professionals has
prepared several TNPPs on IT-related negotiating issues in the last two decades.32

There are also thematic issues that are included in the trade negotiation process (e.g., intellectual
property rights, technical barriers to trade, SPS, environment, labour, gender equality,
sustainable development). These are not sectoral but thematic or cross-cutting issues that cover
all sectors. In this case, some business associations and other interest groups may also prepare
and publish TNPPs on those thematic issues to advance their interests in the negotiation process.

32
Canada’s Association of IT Professionals, “Position Papers.”

46
There are many thematic TNPPs on the websites, particularly from those interest groups focusing
on the environment, labour, gender equality, and sustainable development.

TNPPs Prepared by Academic, Media, and Other Interest Groups

Academic community groups, non-governmental organizations, and other interest groups are
important stakeholders in trade negotiations and consultations. Many of them are active in
preparing and publishing TNPPs before and during the TNC process. Since they represent
diversified interests in trade negotiations, their TNPPs can be very different. However, there are
primarily three types of trade negotiation papers prepared by them.

1. Position Paper by Academic Researchers

The first type of TNPP is mainly prepared by academic researchers who are either from research
institutes or universities/colleges. Since they are working in academic institutions, they do not
necessarily represent any particular interest groups unless their research is funded by a special
interest group. Generally, they are supposed to provide objective views on trade negotiations
based on their academic research and analyses. They may use a lot of statistical data and other
evidence to validate their positions. However, because these academic researchers are not
directly involved in the trade negotiation process and do not necessarily have access to the
confidential information, the views and opinions in their TNPPs are sometimes not so direct and
focused. But their economic analyses and impact assessments should be very useful for trade
negotiations.

2. Position Paper by the Media

The second type of TNPP often appears in the news media and now frequently on social media.
They are written primarily by journalists and some selected experts to report and comment on
ongoing trade negotiations. They normally take the form of op-ed or commentary page to
express their opinions on specific trade negotiating issues and the impacts on their country,
businesses, and society. Many people are also increasingly using Facebook, Twitter, Instagram,
and other tools to communicate and advance their trade negotiation positions. Government
agencies and business organizations are also increasingly using social media to communicate
their trade negotiating positions to reach a wider audience.

3. Position Paper by Interest Groups

The third type of TNPP is primarily prepared by various interest groups. They range from
environmental groups, to labour unions, to human rights lobbyists, and to women and
Indigenous people, etc. TNPPs prepared by these interest groups vary a lot, depending on their
special interest in trade negotiations. Therefore, it is important to exercise your own judgment
before you accept or deny the positions of these special interest groups. Many non-governmental
organizations and interest groups have submitted position papers during WTO ministerial
conferences on various negotiating issues. Their position papers can easily be found on the WTO
website.33

33
World Trade Organization, “Statements and Position Papers From NGOs and Business Associations.”

47
TNPPs in Various Forms

Types of TNPPs can be also classified by various forms prepared by stakeholders and interest
groups during the TNC process. Some TNPPs are more comprehensive, while others are more
focused. Some are very technical while others may be quite general, as summarized below.

Comprehensive Report Covering the Entire Trade Agreement

When a country is interested in conducting an FTA negotiation with its trading partners, the
government normally attempts to prepare a comprehensive report to assess the impact of the
proposed trade agreement on the country. Sometimes, this type of comprehensive report is
called an FTA feasibility study. For example, Canada conducted two joint feasibility studies when
it intended to negotiate FTAs with China and ASEAN. This type of comprehensive report covered
the entire spectrum of FTA negotiations—ranging from goods to services, to investment, to
government procurement, to intellectual property rights—as well as to the environment, labour,
and other issues. The EU, as required by the European Parliament, also conducts a sustainability
impact assessment (SIA) for all trade and investment negotiations with its trading partners. These
SIA reports are very comprehensive to cover economic, social, and environmental impacts of the
proposed trade and investment agreements. All EU SIA reports are available on its website
(http://trade.ec.europa.eu/doclib/cfm/doclib_section.cfm?sec=168). The SIA report to analyze
the impacts of the EU–Indonesia CEPA is also included in the list.34

Some national business associations and a few academic institutes/think-tanks occasionally carry
out comprehensive studies on trade agreement negotiations. It is important and reasonable for
these national business associations to cover all negotiating issues because they represent their
members nationally. Their members have interests in all related negotiating issues as they are
from all sectors and regions of the country. Sometimes, research institutes and think-tanks also
prepare comprehensive studies to cover important FTAs. For example, the Asia Pacific
Foundation of Canada prepared a comprehensive study on the Canada–China FTA which covered
most of the potential trade negotiating issues between the two countries. 35 APINDO also
prepared a comprehensive study on Indonesia–EU CEPA, highlighting all potential negotiating
issues to be covered by CEPA.36

It is noted that the preparation of a comprehensive report on trade agreements requires

technical capacity and financial resources. It is difficult for some governments, business
associations, and research institutes to do it on their own. As a result, some governments and big
business associations sometimes hire outside consultants to carry out this type of comprehensive
TNPP.

34
European Commission, Sustainability Impact Assessment (SIA) in Support of Free Trade Agreement.
35
Asia Pacific Foundation of Canada, Toward a Canada–China FTA.
36
Asosiasi Pengusaha Indonesia, APINDO Position Paper.

48
Technical Paper Covering One or Two Selected Issues/Topics
Since trade agreement negotiations are complicated and highly technical, most stakeholders—
whether government agencies, private sector business associations, or other interest groups—
opt for short TNPPs that cover one or two technical issues only. These short TNPPs are most
direct, to address a few selected technical issues and send out clear messages to other trade
partners and/or the general public. It is also much faster and less costly to prepare short TNPPs.

Most of this type of short TNPP can be prepared by in-house experts with technical skills and
some can also be contracted out to external trade experts and sectoral specialists. Since this type
of short TNPP focuses on one or two negotiating issues, it would be relatively easier to find in-
house or external experts to prepare it quickly. No matter how short a TNPP, the authors must
select the right topic, conduct analyses, articulate the reasonings, and make the conclusion to
finally validate your position. It is very important to use the facts, evidence, and analyses to prove
your position.

In fact, it should be more advantageous to prepare and publish this type of short TNPP by focusing
on one or two technical issues, since most people do not like to read long reports. It should also
be in the best interest of those sectoral business associations and interest groups to focus on one
or two selected topics for their TNPPs. These TNPPs should address the specific trade negotiating
issues and provide in-depth analyses before the conclusion of the TNPPs can be made.

Op-Ed and Media Release

Some stakeholders, particularly business association representatives, journalists, and some
experts, are also using op-eds, media releases, or newspaper commentary/opinions to publish
their TNPPs on trade negotiations. This type of TNPP is typically published in a newspaper,
magazine, or newsletter that expresses opinions on selected trade negotiating issues by
journalists or external experts, industrial specialists, or non-governmental organization
representatives.37

For example, during the negotiations for the Trans-Pacific Partnership (TPP), Canadian milk
producers were worried about potential Canadian concessions on the supply management policy
(i.e., regulating dairy production and imports). To share their concerns and to reach as many
stakeholders as possible, the president of the Quebec Federation of Dairy Producers published
an op-ed in the French-language newspaper Le Devoir. He argued that Canada should not change
a well-functioning supply management system that ensured the sustainability of smaller
producers in rural regions while keeping U.S. multinationals away from the market. 38 Such a
strategy may be useful to garner public support for the position of the Canadian dairy industry.
There are also frequent op-eds or commentaries on trade negotiation positions in the Jakarta
Post and other newspapers and magazines in Indonesia.

37
Useful tips on drafting op-eds can be found on the McGill University website. McGill University, “Op-
Ed Writing Tips.”
38
Groleau, “Veut-on vraiment changer.”

49
Another straightforward type of TNPP is a media release, which is often published during an
official press conference or major event. For instance, several leading Canadian business
associations representing enterprises, farmers, and thousands of SMEs from many different
sectors and regions across Canada formed a coalition to speak with a “single voice” supporting
the conclusion of the TPP negotiations. In their joint media release, they declared that the “TPP
is the most important agreement of its kind in over 20 years and would position Canadian
companies to compete on a level playing field in the world’s fastest-growing region for
generations to come.”39 The Indonesian government, business associations, and other interested
parties also used the media release after major rounds of FTA negotiations with their trading
partners. Occasionally they also organize roadshows to communicate their trade negotiation
positions with interested stakeholders across the country.

Many governments, business associations, non-governmental organizations, and other

stakeholders are increasingly using social media tools to communicate their trade negotiation
positions to the general public. Many organizations have published their TNPPs on Facebook and
begun to tweet the developments of trade negotiations to keep their stakeholders informed. It
is expected that social media will be further explored by many stakeholders to communicate and
advance their trade negotiation positions in the future.

Key Steps to Writing a Trade Negotiating Position Paper

Whether you are a government official, a private sector or non-governmental organization

representative, or an academic researcher, you must follow certain steps to write a TNPP. The
following sections provide a step-by-step guide to the preparation of a good TNPP.

Step 1: Identify and Select a Topic for Your Position Paper

Once you have decided to write a TNPP, the first step is to identify and select a topic. The best
topic for a TNPP should be one in which you have an interest and opinion about, and which can
have a significant impact on your country or the members of your organization. There are many
trade negotiation issues to select from. There is little or no point in choosing a consensual topic,
unless you want to challenge a consensus. Sometimes, the topic may be assigned to you by a
senior trade negotiator or a senior member of your organization. However, you and your team
should take several factors into consideration before you finally select the topic.

 First, make sure your chosen topic is arguable. The topic selected should be controversial
or debatable, at least with two clear sides that have different trade negotiating positions.
You are supposed to make arguments to defend your own position on one side. For
example, you would not write a position paper arguing that least developed countries
need special and differential treatment in trade liberalization as every WTO member
would agree with that position.

39
Dubreuil, “Canadian Business Is United.”

50
  Second, list the pros and cons for different positions on your topic. Before you finally
choose the topic, write down the reasons for and against each position. This will help you
understand the arguments of other positions on the topic and make necessary counter
arguments to defend your own position.

 Third, consider the views of your audience on the topic. Before you finally choose the
topic, you have to keep your audience in mind. For example, if you are an Indonesian
government trade negotiator and prepare a TNPP, you have to think about the positions
of your domestic stakeholders as well as those of your trading partners. If you prepare a
TNPP on behalf of a business association such as KADIN Indonesia or APINDO, you have
to think about the views of the majority of your organization’s members. By knowing your
audience in advance, you will have a better idea of the writing style of your TNPP, and
whether it should formal or informal.

Step 2: Conduct Preliminary Research and Monitor Relevant Trade Negotiations

After the topic has been selected for your position paper, the next step is to conduct research
and monitor relevant trade negotiations, and to find out different negotiating positions of other
parties. You need to fully understand the topic to defend your position and also understand other
positions so you can make counter arguments. Monitor relevant trade negotiations on the topic
and find out and understand recent developments and different negotiating positions on your
selected topic.

It is important to find credible, reliable sources to conduct preliminary research on the topic. Visit
websites of relevant international organizations (e.g., WTO, United Nations Conference on Trade
and Development [UNCTAD], International Trade Centre, Organisation for Economic Co-
operation and Development [OECD], World Bank, Asia-Pacific Economic Cooperation [APEC], and
ASEAN). Also look for some peer-reviewed journals and academic papers on your topic. Use
Google to find out many other resources and references. However, it is important to check the
credentials of the authors and try to avoid self-published sources on the Internet that may be
based on false facts and misguidance. The key is to find as many credible sources as possible. Do
not limit yourself to a few credible sources such as WTO and UNCTAD only.

If you are a government negotiator, you may have access to TNPPs of other WTO members on
WTO negotiations or from other trading partners under FTA negotiations. Some of those TNPPs
may be confidential and accessible to government negotiators only. In that case, you need some
privileges and advantages to write a government position paper. It could also be challenging to
make counter arguments against the positions of your trading partners, since these TNPPs may
be well crafted with strong opinions. In that case, you have to do more research to make counter
arguments.

If you are a representative of a business organization or another interest group, you could
conduct some surveys, consultations, and studies to summarize the interests of your
members/groups to find out their positions and opinions on your topic. Do extensive Internet
searches to look for relevant information. Also, visit local libraries to find relevant books, journals,

51
and newspapers to help you with more thoughts on your TNPP. And look for sources and
information from your government if possible.

For example, if you are writing a TNPP for a women’s business group, consult key women’s-
owned/operated businesses to learn what barriers there are to their exports among your trading
partners. Also, find out what specific opportunities could be brought to women’s businesses if
particular trade and investment liberalization measures in those selected sectors (e.g.,
agriculture, services, apparel) are adopted in the trade negotiation process. This will put you in a
good position to draft the TNPP for the women’s business group.

Whether you are a government negotiator or a representative of a private sector business

association or other interest group, or an academic researcher, you need to monitor the current
trade negotiations on your selected topic very closely. The WTO website has provided updated
information on those important trade negotiation topics. Other international organizations, such
as UNCTAD, OECD, World Bank, and APEC, have also provided good sources of the status of some
trade negotiating topics. Countries like Canada, the U.S., and the EU have also provided good
sources on current trade negotiations from their own perspectives. Some international business
organizations, such as the International Chamber of Commerce (ICC), and some think-tanks, such
as the South Centre, World Economic Forum, International Institute for Sustainable
Development, and CUTS International, also provide the latest information and analyses of WTO
and FTA negotiations. There are also some Indonesian sources for trade negotiations in English
and Bahasa Indonesia. (For more details, see “Other Tips and Resources for Writing TNPPs.”)

Step 3: Create an Outline of Your Position Paper

Once the topic has been selected and the preliminary research conducted, the next step is to
prepare an outline. There is no standard outline for a TNPP. However, a good TNPP outline should
include at least the following:

 Introduction and background. The purpose of the introduction is to describe the problem
and make your readers interested in the selected topic. Take the opportunity to convince
your readers that the selected topic is an important trade negotiating issue and you have
important points to make. The introduction also allows you to provide some background
information about the trade negotiations and the selected topic. Generally, the
introduction should provide the outline of your TNPP and end up with your position,
which you could phase either as a question or a statement so people want to continue
reading the position paper.

 Main body of the position paper. This will be the main part of your TNPP, which should
focus on the definition, data, facts, issues, arguments, and counter arguments to augment
your position. Discuss other sides and positions of the selected topic. Then try to persuade
your readers to believe in your position by making convincing arguments. Also make
counter arguments against other positions with facts, evidence, and examples, proving
that your position is better than others. Present some reasons why readers should believe

52
 in your position. Depending on the type and length of the TNPP, limit the number of
arguments, and stick to the most convincing ones.

 Conclusions and suggested course of action. The purpose of the conclusions of a TNPP is
to urge readers to agree with your position and possibly suggest some actions to follow
up. The conclusions of the position paper should be linked with your introduction.
However, do not simply repeat the claim in the introduction, but draw conclusions based
on your analyses and arguments from the main body of the position paper. Depending on
your topic, you may wish to make your final appeal to readers to agree with your position.
You could also suggest actions to follow up on your position in order to find possible
solutions to the trade negotiations.

Step 4: Draft Your Position Paper

The next step is to draft the TNPP based on the outline and preliminary research on the topic.
However, in most cases, your outline may be adjusted during the writing process. This is normal.
But the objectives of your TNPP should remain the same.

When you write a TNPP, keep in mind that you are supporting one side of an unsettled trade
negotiating issue. Therefore, a TNPP is in fact an argument paper to present your negotiating
position to your trading partners and other interested parties, arguing that your position is a
correct stance. It is important to provide convincing evidence, facts, and arguments to your
readers so they agree with your position on the selected trade negotiating issue. As a result,
consult your team, craft your positions, and develop your arguments very carefully in the drafting
process of your TNPP.

As you write a TNPP, articulate a statement that contains your overall claim about your position
and develop arguments with reasons and evidence to support it. During the position paper
drafting process, consider the following strategies and skills:

 Focus on one or two narrowly defined negotiating issues. It is important to focus on your
selected topic, ideally covering only one or two narrowly defined trade negotiating issues—
unless you are tasked to write a comprehensive report on the entire trade agreement. It’s
better to introduce the focused issues early by using a clear and specific statement so that
readers can understand the focus of the discussion in the TNPP. Ideally, the statement of the
position should appear in the introduction of the TNPP.

 Develop your arguments to defend your position. Present evidence and facts to
demonstrate that your position is a correct one. Also make counter arguments to show that
other positions are not good choices, as they are either against trade rules/practices or not
beneficial to trading partners or counter-productive in the trade negotiation process.

 Clearly articulate the reasons and present the evidence to defend your position. The
reasons should be logical, relevant, and convincing. Draw evidence from published data and

53
 the past negotiating experience, as well as from outside sources such as surveys and
interviews of memberships and testimonials of renowned trade experts.

 Organize your TNPP effectively. It is important to organize your thoughts and arguments to
defend your position and convey your message to readers logically and effectively. Whether
you are making arguments or counter arguments on a particular trade negotiating issue, your
points should be easy to follow. Present your trade negotiating position in connection with
those of other trading partners. When comparing your position with others, you are trying to
convince your readers that your position is a correct or better one, which can benefit all
parties involved.

 Write your TNPP in a clear style. Your position paper should be clear and attractive to your
readers. It should be free from spelling errors and grammatical mistakes. It is important to
use jargon-friendly and simple language. In the areas of trade negotiations, people often use
acronyms—such as GATT (General Agreement on Tariffs and Trade), GATS, and TRIPs
(Agreement on Trade Related Aspects of Intellectual Property Rights)—which are commonly
understood by those trade negotiators. However, it is better to use simple language and spell
out acronyms to make all readers understand your position.

 Add references where necessary. If your position paper has cited statistical data, survey
results, and other information produced previously by others, document those sources by
adding endnotes or footnotes. However, do not go overboard on including many quoted
sources as most of the ideas in your TNPP should be your own original material. Needless to
say, you cannot copy from other sources without proper acknowledgement in order to avoid
plagiarism, which is an offense against original authors.

Step 5: Edit, Review, and Revise Your TNPP

Finally, you have finished your draft of the TNPP—congratulations! Then depending on the
timeline, take a break away from your draft before you start to edit it. After the break, you may
have some new ideas about the topic and have more insights about your arguments and counter
arguments. You may wish to invite your colleagues or friends to peer review your draft TNPP.
Based on the comments received, you may wish to revise your TNPP before it can be released,
presented, or published. The following steps could be followed to improve the quality of your
TNPP after you have finished your first draft.

 Edit and proofread your draft TNPP by yourself. After the short break from your draft,
try to edit and proofread your TNPP on your own. This will give you an opportunity to
insert some new ideas and insights. It will also help you correct potentially wrongly used
words.

 Spell check and formatting. Spell check is an easy tool which can be used to avoid
misspellings in your draft TNPP. However, proofread it first because this tool will not catch
words that are used incorrectly even though they are spelled correctly. This is also a good
time to format your TNPP in an easy-to-read and attractive style.

54
  Re-read your TNPP again. This time, try to read your TNPP as a reader rather than the
author. With fresh eyes, try to verify your claim to make sure your arguments and counter
arguments make sense. You may need to develop or add more evidence. Try to make your
position and arguments in a logical manner. You may need to adjust some sentences to
ensure more clarity.

 Brainstorm with your team and then have your draft TNPP peer reviewed if possible.
Once you and your team are satisfied, invite other colleagues or friends to peer review
your draft TNPP. Your peers will provide specific comments from a fresh perspective and
may suggest specific edits and revisions. You can benefit greatly from the peer review
process.

 Revise your TNPP thoroughly. After you have received comments and suggestions from
your peers, you are ready to make the final revisions to your TNPP. Respond to each and
every comment made by your peers. Also try to obtain more evidence to support your
arguments and make sure these arguments are clear and understandable. You may need
to go back to check relevant facts and evidence to ensure their accuracy and also to
rewrite some sentences to make them more concise and easier to understand. You may
wish to restate your conclusions to make them more affirmative and convincing.

 Prepare a final reference page or bibliography to attach to your TNPP. As you have used
a lot of evidence to support your position, it is important to include a list of your sources.
It could be a reference list or a bibliography. These should be prepared in a standard
format which is common to many publications.

Other Tips and Resources for Writing TNPPs

Tips and Suggestions

Writing a trade negotiation position paper is both challenging and rewarding. On the one hand,
it is challenging because many trade negotiating topics and issues are cross-cutting and
interrelated. It can be challenging to defend or argue your negotiating position with so many
interrelated trade negotiating issues together. You should have a full understanding of all related
issues and the technical capacity to write a TNPP. On the other hand, it can be rewarding as your
TNPP could become a useful communication tool to convince your trading partners or readers to
accept your position on these negotiating issues and that the country or the businesses you are
representing would benefit from your TNPPs. It is possible that your TNPPs could be accepted to
move the trade negotiations forward.

It is also critical to ensure that your TNPP messages are properly delivered and well understood
by your trading partners or other interested readers. The following are some tips and suggestions
(presented as dos and don’ts) to help government negotiators, private sector representatives,
and other interested parties in drafting TNPPs.

55
Map Out All Negotiating Issues and Concerns

Dos:
✓ Before and during each trade negotiation round, you may be faced with a lot of issues and
concerns relating to your country or your members. Map out all relevant issues and concerns
plainly and consult your team.

✓ Start by identifying the most important negotiating issues for your country or members, then
break them down into the details.

✓ Reflect on the selected issues, consult with your team, and elaborate on them further to
select a correct topic for your TNPP.

✓ These questions may help you to map out the issues and concerns:
– What are the most important issues that might potentially hamper your trade and
investment interests?
– What are the impacts if the selected issues are incorporated into the trade agreement
negotiations?
– Are these issues related to other political, economic, and social issues?

Don’ts:
✗ Do not select issues that have no direct or indirect trade interest in your country or the
business you are representing. You may have to put your personal beliefs or preferences
aside and examine the selected topic from a different perspective.

✗ Do not “make up” any issues by addressing those that fall outside the scope of the ongoing
trade negotiations or create false expectations on potential outcomes of the trade
negotiations.

✗ Do not work individually. TNPPs normally reflect the views of your government or an
organization you are representing. Thus, you should always work with your team and think
from the perspectives of your country or your organization.

Select and Decide on the Topic

Dos:
✓ After you have mapped and analyze all of the issues, you should be able to select a topic that
covers your issues and concerns. The topic should be clear, concise, explainable, and
arguable.

56
✓ Make sure your selected topic is closely related to the negotiating issues. Your research,
analysis, and recommendations should be surrounded by your selected topic.

Don’ts:
✗ Do not choose a topic with a position that all parties agree with. Your selected topic should
at least have two sides so you can make arguments and counter arguments.

✗ Do not choose a topic that is negative (e.g., contains contradictions, racism) which you cannot
possibly make arguments to support.

Gather Supporting Data and Information

Dos:
✓ Do thorough research with your team to gather relevant data and information that you need
to build your arguments. Your objectives, work distribution, and deliverables should be clear
and consistent from beginning to end.

✓ Make sure the data and information are sourced from trusted and updated sources (e.g.,
official websites of international organizations and government agencies, published books
and journals, prominent trade experts/writers).

✓ Whenever possible, opt for scientific evidence to support your arguments. You may also use
previous experiences and case studies that are in line with the selected topics and issues.

✓ Keep team members updated with relevant data and information, so that every member is
on the same page.

✓ Engage outside experts if your team is unable to gather the required supporting data and
information.

Don’ts:
✗ Do not rely on a single source of data and information to make your analysis and arguments.
Always cross-check with other sources.

✗ Do not use data and information that are unclear, inconsistent, and ambiguous.

✗ Do not look only for limited data and information to support your position. Be open to the
findings and arguments that might contradict your position.

✗ Do not distort information from your sources to favour your arguments.

57
Build Arguments to Support Your Position

Dos:
✓ Build your arguments based on your research and analysis to support your position,
conclusions, and recommendations.

✓ Let your team members convey their views freely and openly, and consider their positions
and arguments.

✓ Adopt the majority views while also addressing minority views in light of your position and
issues.

✓ These questions may help you to make arguments that support your position:
– Does your position reflect the best interest of your country or organization?
– What are the reasons for your chosen position?
– How do you defend your country or organization with your chosen position?

Don’ts:
✗ Do not reject other members’ views and arguments automatically without considering them.

✗ Do not get confused with the positions from your counterparts or other parties.

✗ Do not arrive at a position without doing research and building your arguments.

Brainstorm With Team Members

Dos:
✓ Keep brainstorming with your team members throughout the preparation of the TNPP. Trade
negotiations keep changing focus, and regular brainstorming will keep you updated on the
developments of the trade negotiations and relevant issues.

✓ Share recent developments on trade negotiations and selected issues with your team
members and ask for their views and opinions.

✓ Cover all aspects of the selected topic during the brainstorming session.

Don’ts:
✗ Do not pick and choose team members for brainstorming. Ensure that most of the team is
informed about the development of the TNPP.

58
✗ Do not focus only on aspects you are most interested in. Other related aspects should also be
considered and discussed.

Useful Resources
There are many useful resources for writing TNPPs, such as those from international
organizations, government agencies, business associations, non-governmental organizations,
academic institutions, etc. Following are some sample links to resources (which could be
expanded and updated by readers on a regular basis).

International Organizations
WTO—Collections of non-governmental position papers. There are many references on trade
negotiation position papers on the WTO website. For example, if you search “position paper” on
the WTO website, you will find close to 9,000 links which can be further searched for relevant
positions and references.

https://www.wto.org/search/search_e.aspx?search=basic&searchText=position+paper&metho
d=pagination&pag=0&roles=%2Cpublic%2C.

WTO—International Trade and the Position of European Low-Skilled Labour.

https://www.wto.org/english/res_e/reser_e/ae0001_e.htm.

WTO—Unice Post Cancun Trade and Investment Strategy.

https://www.wto.org/English/forums_e/ngo_e/pospap38_unicef_e.pdf.

WTO—Position Paper for the WTOs 9th Ministerial Conference in Bali, December 2–6, 2013, The
Norwegian Forum for Environment and Development (ForUM) .
https://www.wto.org/english/thewto_e/minist_e/mc9_e/positionpapernorvegforum.pdf.

WTO—Nairobi and Beyond: Towards the Revival of WTO Negotiations.

https://www.amfori.org/sites/default/files/FTA%20-
%20Position%20Paper%20on%20WTO%20%2812%202015%29.pdf.

UNCTAD—There are about 3,600 references on position papers through the link on the
UNCTAD website.
https://unctad.org/SearchCenter/Pages/Results.aspx?k=position%20paper.

APEC—“APEC Workshop on World Trade Organization (WTO) Rules Negotiation on Trade in

Services.”
https://www.apec.org/Publications/2006/12/APEC-Workshop-on-World-Trade-Organisation-
WTO-Rules-Negotiation-on-Trade-in-Services.

APEC—Negotiating Free-Trade Agreements: A Guide.

https://www.apec.org/-/media/APEC/Publications/2005/12/Negotiating-Free-Trade-
Agreements-A-Guide-2005/2005_negotiating_free_trade_agreement_a_guide.pdf.

59
Government Agencies
Ministry of Trade, Government of Indonesia—Proposed Disciplines on Prohibitions and Special
and Differential Treatment for Fisheries Subsidies: Proposal from Indonesia, Revision.

https://www.wto.org/TN/RL/GEN/189/Rev.1

Global Affairs Canada—“Trade Negotiations and Agreements.”

https://www.canada.ca/en/services/business/trade/negotiations-agreements.html.

Standing Senate Committee on Foreign Affairs and International Trade. Free Trade Agreements:
A Tool for Economic Prosperity.
https://sencanada.ca/content/sen/committee/421/AEFA/reports/FreeTradeReport_e.pdf.

Office of the United States Trade Representative—United States–European Union Negotiations:

Summary of Specific Negotiating Objectives.
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European Union—EU Proposal: TISA—Dispute Settlement Chapter.

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EPP Group of the European Parliament—“EPP Group Position Paper on International Trade.”
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