September 4, 2018

Australia and Indonesia boost economic ties

In strengthening economic ties and creating new business opportunities in both countries, Australia and Indonesia have confirmed an economic agreement on Monday, known as the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), receiving widespread industry support.

"Under this agreement, over 99% of Australian goods exported to Indonesia will either be duty-free or enter under significantly improved preferential arrangements by 2020," Karen Andrews, Minister for Industry, Science and Technology, shared. "It is a win-win outcome – with Australia also providing Indonesia with improved arrangements that will allow Australia producers easier access to Indonesian goods."

Terry Richardson, President of Australia Dairy Industry Council revealed that, in addition to Indonesia being Australia's third-largest dairy export market, its dairy demand is also consistently increasing alongside a population of 260 million. In 2017, the two countries' two-way trade valued at a total of $16.4 billion.

In a joint media release from Prime Minister Scott Morrison and Simon Birmingham, Minister for Trade, Tourism and Investment explained how the collaboration will benefit farmers:

"A renewed economic partnership with Indonesia is particularly a major boost for Australian farmers with the grains, live cattle, dairy and horticulture sectors to benefit from greater certainty of access and lower tariffs. As a result, Australian farmers will be able to export 500,000 tonnes of feed grains such as wheat into Indonesia tariff-free. This is a significant boost for the Australian wheat industry, building on our substantial milling wheat exports."

Richardson concluded, "As Australia's nearest neighbour with strong existing ties with our dairy industry, the conclusion of IA-CEPA will enhance the naturally emerging opportunities that are presenting themselves in that key market."

Source: Food Processing