European Union (Definition of Treaties) (Partnership and Cooperation Agreement) (Republic of Indonesia) Order 2010

My Lords, this partnership and co-operation agreement is an international agreement between the Republic of Indonesia and the European Community—now the European Union—and its member states, which was signed on 9 November 2009. This treaty has not yet entered into force, but will do so once all 27 members of the European Union and the Republic of Indonesia have ratified it. This order is a necessary step towards the UK’s ratification. The principal effect of the draft order is, first, to ensure that the powers under Section 2 of the European Communities Act 1972 would be available to give effect to any provisions of the agreement; and, secondly, to permit any expenditure arising from the partnership and co-operation agreement to be met from the Consolidated Fund. We have a strategic interest in developing the UK’s and the EU’s relationships with Indonesia. As south-east Asia’s largest economy and emerging power, its international influence is growing through its membership of the G20 and it is a key country on climate change issues. It is the world’s third-biggest carbon emitter, as well as a major energy producer and consumer. It is also on course to be the fifth-largest economy in the world by 2030, which is only 20 years away. We are talking about a new but vibrant democracy and the world’s largest moderate Muslim-majority country, which certainly is moving towards being rated as having the most liberal stance in south-east Asia. The partnership and co-operation agreement should enable us to deepen trade and investment links and make the most of the many commercial opportunities which lie in Indonesia today. It is also a necessary precursor to an EU-Indonesian free trade agreement. I should explain that the agreement has been ratified so far by four EU member states. Others expect their domestic processes to be completed by early 2011. I am satisfied that the order is compatible with the rights contained in the European Convention on Human Rights. This order is important for our nation, for the European Union and for world trade. I commend it to the Committee.