Trade deal a win for Aussie vegetable growers
Australia has signed a new trade deal with Indonesia which will help local carrot and potato growers looking to export into this growing market.
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) aims improve two-way trade between the two countries, and will decrease tariffs placed on a range of exported Australian goods.
Indonesia has a population of 270 million and is expected to have the world’s fifth-largest economy by 2030. Australia will be able to benefit from the country’s economic growth.
“Under the agreement, producers of grains, live cattle and meat, dairy and horticulture, and many other products, will benefit from lower tariffs and improved access to Indonesian markets,” explained a joint media release from Prime Minister Scott Morrison and Trade Minister Simon Birmingham.
Some of the key IA-CEPA outcomes for the vegetable industry are:
- Carrots — Increased import quota of 5000 t per year, growing to 10,000 t per year after 10 years, with a decreasing tariff schedule during this time.
- Potatoes — Increased import quota of 10,000 t per year, growing to 12,500 t per year after five years, with a decreasing tariff schedule during this time.
AUSVEG CEO James Whiteside said carrots and potatoes exports are two of the Australian vegetable industry’s key export crops, and the agreement should lead to an immediate increase in the trade of these commodities to Indonesia.
It will help the vegetable industry meet its goal of increasing its export value to $315 million per year by 2020, an increase of 40% from 2016.
“Trade agreements with neighbouring countries such as the IA-CEPA help provide our industry with confidence that it can continue to prosper through developing export markets, which helps secure the profitability and competitiveness of the Australian vegetable industry,” Whiteside said.
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