Wheat, meat groups endorse Trump trade deal with Indonesia
President Trump on Tuesday announced a trade deal with Indonesia, and U.S. Wheat Associates and the U.S. Meat Export Federation endorsed it.
Trump said on social media: “It is my Great Honor to announce our Trade Agreement with the Republic of Indonesia, as represented by their Highly Respected President, Prabowo Subianto. It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers. The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A. — The Best Market in the World! In addition, Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy. This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!”
The White House also announced the framework of the agreement. “Indonesia will eliminate approximately 99% of tariff barriers for a full range of U.S. industrial and U.S. food and agricultural products exported to Indonesia,” the White House said.
“We are excited and grateful to track this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry,” U.S. Wheat Associates President and CEO Mike Spier said in a news release. “We thank the Trump administration, the U.S. Trade Representative and the U.S. Department of Agriculture’s Foreign Agricultural Service for their continued work on behalf of American wheat farmers.”
U.S. Wheat Associates noted that earlier this month the U.S. wheat export organization and APTINDO, Indonesia’s flour milling association, had signed a memorandum of understanding under which APTINDO committed to doubling its annual purchases of U.S. wheat to 1 million metric tons (36.7 million bushels) each year for the next five years, reflecting the rapid growth in demand for wheat foods in Indonesia.
U.S. Meat Export Federation President and CEO Dan Halstrom said, “USMEF thanks USTR for its tireless efforts to negotiate a meaningful agreement with Indonesia, tackling many challenging issues. Indonesia is a market with incredible potential, in which the opportunity for U.S. beef is estimated at $250 million annually. But today, exports are minimal due to numerous trade barriers.
“We are encouraged to see that the highlights detailed in the U.S.-Indonesia joint statement include resolving key issues such as import licensing, the commodity balance policy, and Indonesia’s onerous plant-by-plant approval process. For both U.S. beef and U.S. pork, these longstanding restrictions have limited exports to Indonesia. Indonesian importers and consumers are demanding U.S. red meat, and we look forward to the swift conclusion of these negotiations and expanded export opportunities.”
