On Feb. 19, the U.S. and Indonesia signed a trade agreement that will expand the U.S.’ market access into the country.
“This landmark Agreement breaks down trade barriers while advancing the economic and national security interests of the American people,” said U.S. Trade Representative Jamieson Greer. “I am glad to sign this historic Agreement with Indonesia and I thank Indonesian Minister Airlangga Hartarto for his commitment to rebalancing our trade relationship.”
Deal details
Under the U.S.-Indonesia Agreement on Reciprocal Trade, Indonesia will eliminate barriers on more than 99% of U.S. products, including agricultural products. The U.S. will maintain a 19% reciprocal tariff rate for imports, except for certain products, such as apparel and textiles.
As part of the deal, Indonesia will purchase at least 50,000 metric tons of U.S. beef annually. In addition, the country will recognize USDA’s authority on food safety and animal health.
While the Supreme Court’s decision to strike down President Donald Trump’s sweeping tariffs came shortly after the Indonesia trade deal, the agreement remains intact. However, there could be implementation implications following the uncertainty of future tariff actions.
Industry support
The National Cattlemen’s Beef Association (NCBA) applauded the announcement.
“With this agreement, American cattle producers now have access to the fourth most populous country, the largest halal beef market in the world, and more opportunities for producer profitability,” said NCBA President Gene Copenhaver on Feb. 20. “When combined with the Taiwan trade deal signed last week, U.S. cattle producers now have more market access than they have had in decades.”
The U.S. Meat Export Federation (USMEF) said the deal offers “tremendous market access” for U.S. red meat.
“Especially without access to China, the U.S. beef industry needs to be able to serve the Indonesian market, which demands similar items as China and other Asian destinations,” said USMEF President and CEO Dan Halstrom. “The new agreement addresses the many barriers maintained by Indonesia, and successful implementation will allow Indonesian importers and consumers to have meaningful, consistent access to U.S. beef for the first time.”
The organization estimates export value could reach $400-500 million following implementation. — Anna Miller Fortozo, WLJ managing editor
