A new report examining the performance and potential of Australia’s trade relationship with Indonesia has recommended simplifying certification processes to help alleviate non-tariff barriers and boost agricultural trade.
The inquiry was referred in November last year to the Joint Standing Committee on Trade and Investment Growth chaired by Queensland Nationals MP Ken O'Dowd with WA Liberal MP and Katanning farmer Rick Wilson a contributing member.
The report detailed core areas of concern for Australian farm exporters about restrictions on trade to Indonesia that also limit economic opportunity.
The Department of Agriculture and Water Resources’ submission attacked concerns about Indonesia’s pursuit of food security through self-sufficiency, saying it makes agricultural trade with that trading partner “challenging and unpredictable”.
“Indonesia is aiming to achieve self-sufficiency through domestic production of staples - rice, corn and soy beans - an increased production of beef and sugar,” it said.
“Indonesia uses import restrictions, including bans and quotas, to support local producers while negatively impacting Australian exporters.
“Australia’s agricultural trade relationship with Indonesia is frequently characterised by unexpected changes to import conditions leading to loss or reduction in access and uncertainty for Australian exporters."
