Australia and Indonesia announce trade deal
Australia and Indonesia have successfully concluded negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
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 finalisation of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will help Australian vegetable growers looking to export into this potentially lucrative market. In the 2017/18 financial year, Australian vegetable exports to Indonesia were valued at $3.7 million, with the top commodity being potatoes, which accounts for nearly half 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.
Following the announcement on Friday 31 August, AUSVEG CEO James Whiteside said the efforts of the Department of Foreign Affairs and Trade and former Trade Minister Steven Ciobo, who worked together with their Indonesian counterparts to finalise negotiations, are greatly appreciated by the Australian vegetable industry.
“In particular, 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 these commodities to Indonesia, a potentially lucrative market for our growers,” said Mr Whiteside.
For more information on the trade deal please visit the DFAT website here.