AUSVEG, the industry representative for Australia’s vegetable and potato growers, has welcomed Indonesia’s ratification of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), saying that the agreement will help Australian vegetable exporters trade into this growing market.

The Indonesian ratification of the IA-CEPA means that the trade deal will enter into force in 60 days on 5 July 2020. The IA-CEPA will create the framework for a new era of closer economic engagement between Australia and Indonesia, which should improve two-way trade between the two countries and provide opportunities for Australia’s fresh vegetable exporters.

“The agreement to increase import quotas and decrease tariffs for carrot and potato exports – two of the Australian vegetable industry’s key export crops – should lead to an immediate increase in the trade of over AUD$15 million in annual trade, an increase of over 300 per cent in current trade values of fresh vegetables to Indonesia,” said AUSVEG National Manager – Export Development Michael Coote.

“Even in the midst of the current economic climate, demand has continued to be strong for Australian fresh vegetables in export markets, with enquiries still coming in from a range of key export markets. Australian growers are agile and capable of meeting demand from this market once the IA-CEPA enters into force.”

“The IA-CEPA is an important trade agreement that aligns closely with our industry’s increased activities in market development, which includes Indonesia’s continued participation in the AUSVEG Reverse Trade Mission that allows buyers from key export markets to visit Australian vegetable growers and see first-hand the high-quality produce for which our growers are renowned around the world.”

“Given Indonesia is predicted to have the world’s fifth largest economy by 2030, the IA-CEPA will help ensure that Australia’s vegetable growers will benefit from the country’s expected economic growth.”

Last year Australia’s global fresh vegetable exports were valued at AUD$299 million. In the 2018/19 financial year, Australian vegetable exports to Indonesia were valued at modest $5 million, with the top commodity being potatoes, which accounts for over 40 per cent of this total. Given Indonesia’s developing population and its proximity to Australia, this market has strong potential for local growers to boost their fresh vegetable exports.

Key outcomes for the vegetable industry from IA-CEPA are:

• Carrots – Increased import quota of 5,000t per year, growing to 10,000t per year after 10 years, with a decreasing tariff schedule during this time.
• Potatoes – Increased import quota of 10,000t per year, growing to 12,500t per year after five years, with a decreasing tariff schedule during this time.

“We are currently in a fantastic position to take advantage of opportunities in export markets, and the industry is working hard to ensure growers have the necessary tools to be successful in the exporting process,” said Mr Coote.

ENDS
MEDIA CONTACT: Shaun Lindhe, AUSVEG National Manager – Communications
Phone: 03 9882 0277, Mobile: 0405 977 789, Email: shaun.lindhe@ausveg.com.au