Australia has signed off on a historic and comprehensive deal with Indonesia, which both countries have agreed to implement within the next 100 days. Australia already exports about $2.8 billion worth of agricultural goods to Indonesia and the new agreement should see that increase by leaps and bounds.
Once the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is implement, 99 per cent of the nation's agricultural goods will get preferential access into Indonesia.
That's good news for farmers everywhere - Indonesia is the world's fourth largest country by population and is expected to be a trillion-dollar economy by 2050.
IA-CEPA outcomes for vegetables include:
- 25 per cent tariff on potatoes (excluding granola, median, nadia and blis) cut immediately to ten per cent for 10,000 tonnes per year, then further reduced after five years to five per cent for 12,500 tonnes per year, increasing by 2.5 per cent per year
- 25 per cent tariff on carrots cut immediately to ten per cent for 5000 tonnes per year, with progressive tariff reductions down to zero per cent for all carrots after 15 years
- Elimination of tariffs from implementation or by 2026 for most other vegetables
Fruit and nuts
Indonesia will eliminate tariffs on citrus under tariff rate quotas:
- 25 per cent tariff on Australian mandarins cut immediately to ten per cent for 7500 tonnes per year, with progressive tariff reductions down to zero per cent for all Australian mandarins after 20 years
- Guaranteed tariff-free access for 10,000 tonnes of oranges, increasing by five per cent each year
- Guaranteed tariff-free access for 5000 tonnes of lemons and limes, increasing by 2.5 per cent each year
Indonesia will reduce or eliminate tariffs for other fruit and nuts:
- Elimination of tariffs on pineapples, avocados and strawberries in 2026
- 20 per cent tariff on mangoes reduced to 12.5 per cent in 2025
- Five per cent tariff on dragon fruit reduced to two per cent in 2026
- Elimination of all other tariffs including on bananas, persimmons, and a range of tropical fruit which were not eliminated under AANZFTA.