Indonesian Free Trade Agreement good news for farmers

8 May 2020

The Minister for Agriculture, David Littleproud has welcomed the news that Indonesia have completed the domestic ratification process for the free trade deal with Australia.

Minister Littleproud said this bilateral agreement has been an objective of the Australian Government for a long time and the benefits will begin to flow from the 5th July.

“This is great news for Australian farmers and Australia’s agricultural sector,” Minister Littleproud said.

“Indonesia is already our 6th largest agricultural export market. This agreement will help us see the $2.5 billion export market grow even further.

“There is still more work to be done on technical barriers for trade with Indonesia but this is a great basis in which to start from.

“The benefits will be across the board and is a reminder of how our farmers and the agriculture sector will continue to be the bedrock of our recovery from the COVID-19 crisis.

“There will be duty free access for 575,000 head of live male cattle per year, increasing 4 per cent a year to 700,000.

“The remaining 5 per cent tariffs on Australian frozen beef and sheep meat will be reduced to 2.5 percent and then eliminated after 5 years.

“For our grain producers there will be a guaranteed duty free access for 500,000 tonnes per year of feed grain such as wheat, barley and sorghum and that will increase 5 per cent each year.

“Dairy farmers will benefit from the elimination of 5 per cent tariff for milk and cream, concentrated or containing added sugar. There will also be the elimination of 5 per cent tariff for grated and powdered cheese of all kinds.

“And there will be improved access for citrus fruits such as mandarins, oranges, lemons and limes.

“The Nation’s farmers have been calmly going about feeding the Australia and exporting to the world.

“The Australian Government will stand with our farmers and continue to work to find new and expand existing markets to give them a competitive edge.”