WASHINGTON – Last week, President Trump announced an Agreement on Reciprocal Trade with Indonesia, removing tariff barriers on over 99% of U.S. products to expand Americans’ access to Indonesia’s market of over 280 million people. This historic Agreement deepens our economic partnership with a key partner in the Indo-Pacific region and creates new opportunities for American farmers, manufacturers, and producers.
Here are the top headlines:
- New York Post: US, Indonesia finalize trade deal scrapping tariffs on almost all American goods
- New York Times: Trump and Indonesia Sign Trade Deal, Locking In 19% Tariffs
- Associated Press: Indonesia’s president reaches a trade deal with US while in Washington for Trump’s Board of Peace
- Reuters: Indonesia secures 19% tariff in trade deal with US
- The Diplomat: Indonesia Signs Reciprocal Trade Agreement With US, Tariff Set at 19%
- Energy Ag Wired: Indonesia Trade Deal to Benefit U.S. Ethanol
- Successful Farming: Indonesia Trade Deal Opens Major Market for U.S. Agriculture
The announcement was applauded by American farmers and industry leaders:
National Milk Producers Federation President and CEO Gregg Doud: Indonesia is the fourth-most populous country in the world and, it’s a critical market for U.S. dairy farmers. Thank you to Ambassador Greer and the USTR team for securing expanded access that will directly translate into stronger demand for U.S. dairy products.
U.S. Dairy Export Council President and CEO Krysta Harden: This important agreement enhances the strong and growing relationship we’ve developed with Indonesia’s government and dairy industry … This deal reinforces that progress and positions U.S. dairy to expand its capacity to serve as a reliable partner in supporting Indonesia’s dairy sector and nutrition goals.
National Cattlemen’s Beef Association President and Virginia cattle producer Gene Copenhaver: 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. 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. NCBA thanks President Trump and U.S. Trade Representative Ambassador Jamieson Greer for their diligent work to sign this trade deal to the benefit of American producers.
U.S. Meat Export Federation 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 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.
U.S. Grains & BioProducts Council Chairman Mark Wilson: The U.S. Grains & BioProducts Council applauds the work The Trump Administration – including Ambassador Greer and U.S. Department of Agriculture Secretary Rollins – continues to do to open markets around the world to U.S. corn, sorghum, barley and co-product producers and connecting them to those who want and need our products. This move is a welcomed development and a win-win for American producers and Indonesian consumers alike.
Consortium for Common Food Names Executive Director Jaime Castaneda: The common names protections included in this agreement are especially important for America’s farmers and exporters. Ensuring U.S. producers can continue to market and sell products like ‘parmesan’ and ‘feta’ in Indonesia without unfair restrictions helps preserve export opportunities and supports the livelihoods of farmers and manufacturers across the United States.
Growth Energy CEO Emily Skor: On the heels of a similar agreement with Guatemala, the new trade framework with Indonesia represents a renewed hope for American agriculture. Indonesia is the world’s fourth most populous country, and its adoption of 10 percent ethanol blends nationwide could open a 900 million-gallon market to American producers and farmers. We commend President Trump, Ambassador Greer, and Secretary Rollins for their ongoing commitment to unleash American energy and tear down unfair barriers to exports from rural America. There is a growing global appetite for low-carbon, low-cost biofuels, and America is well-positioned to dominate that market.
Renewable Fuels Association President and CEO Geoff Cooper: Indonesia has long been a priority market for U.S. ethanol, with potential demand of roughly 1 billion gallons if 10-percent ethanol blends are used nationwide. We’re grateful for the hard work of President Trump and Ambassador Greer on this agreement, and we look forward to continuing our work with Indonesian officials and industry stakeholders to implement import policies that allow Indonesia to prioritize its domestically produced ethanol while allowing U.S. ethanol to fill any supply gaps or deficiencies. Together, we are excited to bring larger volumes of cleaner, more affordable fuels to the Indonesian public.
Business Software Alliance Senior Vice President of Global Policy Aaron Cooper: The US-Indonesia trade agreement is a breakthrough in digital trade policy. The agreement’s provisions to eliminate tariffs on intangible digital products, guaranteeing cross-border data transfers, and supporting the permanent extension of the moratorium on digital customs duties expands access to digital services and supports the adoption of technology. This agreement sends a strong signal to the global economy and many industries that rely on open and secure digital trade, and reflects key reforms that have been core BSA priorities for nearly a decade.
Global Data Alliance: The Global Data Alliance congratulates the Governments of the United States and Indonesia on their agreement to eliminate longstanding digital trade barriers that have undermined bilateral cooperation and digital transformation in Indonesia. Today’s agreement substantially reforms the US-Indonesia digital relationship for the better.
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