Indonesian trade deal: Farmers ready for takeoff July
Farmers are eager to tap into the new market that will open up when the Indonesia-Australia trade deal takes effect in July.
AUSTRALIAN farmers are ready to take advantage of the new Indonesia-Australia trade deal the moment it begins in July.
GrainGrowers chairman Brett Hosking said industry would be ready to load the first shipments of feed grains of wheat, barley and sorghum as soon as possible, with farmers eager to tap into the new market.
“There will now be room for 500,000 tonnes of feed grain in the Indonesian market,” Mr Hosking said.
“Indonesia will be in need of clean and fresh grain coming out of the coronavirus pandemic.”
New export opportunities will open up from July 5, with the Indonesia-Australia Comprehensive Economic Partnership Agreement coming into force.
Australia already exports about $2.8 billion worth of agricultural goods to Indonesia – population 260 million and growing – and farmers have been keenly waiting to boost that figure through the new agreement.
The deal was anticipated to have come into force by this month after Indonesia’s parliament ratified it in February. However, the coronavirus pandemic is understood to have caused administrative delays.
Under the deal, more than 99 per cent of Australian agricultural produce will have preferential access.
National Farmers’ Federation president Fiona Simson said the deal had something for almost everyone, including commodities that were sometimes overlooked such as vegetables.
“Often different markets favour different commodities, some end up being winners and some are not,” Ms Simson said.
“But (IA-CEPA) is good because it has broad implications for many, many commodities.
“Indonesia has an enormous population and really they’re looking for close, sustainable supplies of food.”
The agreement also includes a special focus on non-tariff barriers, something not found in previous free-trade deals Australia has negotiated.
It means the two countries have already set up committees to tackle issues such as biosecurity or labelling requirements, which in the past have been a stumbling block to exporters putting signed trade agreements into practice.
Trade Minister Simon Birmingham said the deal would give Australian exporters a “competitive edge” in a tough environment due to the coronavirus pandemic.
“With one in five jobs trade-related, enhancing export opportunities for our farmers and businesses will be crucial to reducing job losses arising from the COVID-19 crisis and a critical part of our ultimate economic recovery,” he said.
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