The Office of the U.S. Trade Representative (USTR) announced on Thursday an Agreement on Reciprocal Trade between the United States and Indonesia. As detailed here, the agreement includes tremendous market access gains for U.S. red meat.
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:
Indonesia has been a leading priority for the U.S. red meat industry throughout recent negotiations on reciprocal trade. 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. Currently, Indonesia is essentially closed to U.S. beef due to its trade-limiting import licensing system and effective cap on imports. 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 agreement also includes a 50,000 metric ton annual purchase commitment. This is in line with USMEF’s market potential estimates and should help incentivize true implementation of the commitments Indonesia has made on removing its non-tariff barriers. Export value could reach $400 million to $500 million in the near term, following implementation.
Exports of U.S. pork have also been restricted by Indonesia’s import licensing regime and by limited approval of U.S. plants. These obstacles go away under this agreement, enabling further growth in U.S. pork exports, including further processed products.
USMEF thanks the Trump administration for its continued focus on breaking down barriers for U.S. agricultural exports and we look forward to successful implementation of the U.S.-Indonesia agreement.
