Sugar Cane Farm with Truck
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  • Indonesia to reduce tariffs on Australian raw sugar imports to the same concessional rate enjoyed by Thailand
  • Will improve Australia’s market access and support trade relationship between the two countries

The Government has welcomed Indonesia’s implementation of its earlier agreement to reduce tariffs on the import of Australian raw sugar, strengthening opportunities for Australia’s $2.2 billion sugar export industry.

In February 2017, Prime Minister Turnbull and Indonesian President Widodo reached agreement to each reduce tariffs on a key commodity as a mark of progress towards the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) currently under negotiation.

Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, said the reduction in tariffs would increase the competiveness of Australian sugar exports into the important Indonesian market.

Indonesia will lower the tariff on our sugar exports to the same concessional rate enjoyed by Thailand – around 5 per cent currently – which will level the playing field for our exporters,” Minister Joyce said.

“This is great news for our sugar industry, but it also demonstrates the strong trade relationship we share with Indonesia.

“It will ensure better returns for our exporters through improved market access, while also ensuring Indonesia can continue to have access to the world-class produce we are known for.”

Indonesia will reduce tariffs on the import of Australian raw sugar and Australia will eliminate import duties on Indonesian herbicides and pesticides.

Fast facts

  • The estimated value of Australian sugar exports to the world was $2.2 billion in 2016-17
  • Australia and Indonesia have developed a mutually beneficial agricultural trade and investment relationship, which conclusion of IA-CEPA will enhance and strengthen.
  • Australia’s total agricultural, food, fishery and forestry exports to Indonesia were worth $3.2 billion in CY2016, and imports from Indonesia were worth $843 million.