July 1, 2020

New FTA brings new opportunities for Aussie exporters to Indonesia

The below was originally published on, and is intellectual property of, the Department of Agriculture, Water and Environment.

The date has been set on Australia’s new Free Trade Agreement (FTA) with Indonesia, thanks to news that Indonesia completed their domestic ratification process on 6 May 2020. From 5 July 2020, The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will be in effect for Australian exporters to take advantage of.

Head of Bilateral Engagement, Jodie McAlister, said that this new agreement opens the door for both Australian and Indonesian businesses, service providers and investors to develop closer commercial relationships.

‘We have longstanding and mutually beneficial trade with Indonesia. With a growing middle class and sustained economic growth, there is tremendous scope for further growth, not only for Australian and Indonesian agricultural trade, but also for general trade, investment and services in both directions.

‘Under IA-CEPA, over 99% of our exported goods will enter Indonesia either duty free or under significantly improved arrangements, supporting businesses to take advantage of new opportunities to drive growth and jobs. This very welcome news comes at a time when our country needs a strong trade footprint to help our economic recovery following COVID-19,’ said Ms McAlister.

‘IA-CEPA will also mean that we’re able to support one of our closest trading partners during COVID-19, as they prioritise access to affordable, fresh food for their people. Australia is seen as a trusted, and reliable supplier to Indonesia so it’s a positive outcome for both countries.

‘Entry into force of IA-CEPA also signals to the region and the world that, even in these challenging times, both Australia and Indonesia are committed to free and open trade.

‘For Australian suppliers, there’s good news across a variety of commodities. Live cattle exporters will have greater certainty, including through a tariff rate quota of 575,000 live male cattle, which increases over time to 700,000 per year. Tariffs on our frozen beef and sheep meet will be halved to 2.5%, and our grain producers will have duty free access for 500,000 tonnes of feed grain per year, which increases by 5% each year.

‘The 5% tariffs on milk and cream, and grated and powdered cheese have been eliminated, and access has been improved for Aussie citrus fruits such as mandarins, oranges, lemons and limes.

‘As our 6th largest export market, Indonesia is already a country of opportunity for our exporters so we look forward to seeing this grow over the next few years,’ said Ms McAlister.

For more information on the IA-CEPA visit the Export Quotas page on our website.

To read the full article please visit: Agricultural Trade Matters, July 2020


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