Australia’s only red meat supply chain advisory and policy leadership forum the Red Meat Advisory Council (RMAC) has today (4 March 2019) welcomed the signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Independent Chair of RMAC Don Mackay welcomed the signing and said it would provide greater trade certainty for Australia’s 82,500 red meat businesses and the 438,000 jobs it supports.

“Today’s signing of the deal with Indonesia will improve Australia’s competitiveness in a key live export and growing boxed beef market with our long and valued trading partner Indonesia.”

“Security of markets drives competition and allows Aussie red meat businesses to continue to invest back into their supply chains, employ more Australians and continue to add to their $15 billion-dollar trade export contribution.”

“This will provide greater future certainty for Australia’s producers, processors and livestock exporters including a duty-free quota of 575,000 head of male cattle, liberalised access for female cattle and reduction to 2.5 percent or zero percent tariff on boxed red meat and offals.”

“We congratulate the Australian and Indonesian governments on this historic signing, as well as the many negotiators, trade experts and the industry led IA-CEPA Taskforce that have worked on this since 2010 and 2016.”

IA-CEPA aims to create a framework for closer economic engagement and will build on existing multilateral and regional agreements including the ASEAN-Australia-New Zealand FTA (AANZFTA) – which saw Indonesia liberalise several livestock and red meat tariff lines.

Mr Mackay said the signing was a good first step and that the industry looked forward to ratification and continued trade relationship development from the Australian to the Indonesian Government.

“We urge prompt ratification of the IA-CEPA so these gains can be realised promptly; and look forward to growing our trade relationship with Indonesia through the IA-CEPA and other government programs including the Indonesia-Australia Cattle + Red Meat Partnership (IA-CRMP).”

Conclusion of the Indonesia-Australia Comprehensive Economic Partnership is a key priority in Feeding Our Nation2018, and builds on the Australian red meat and livestock industry’s strategic aim to unlock up to $3 billion in growth through the trade and market diversification.

RMAC Director and Chair of the Australian Livestock Exporters Council (ALEC) the Honorable Simon Crean joined Minister Birmingham in Jakarta for the signing celebrations.

ENDS

Media Contact: Anna Campbell, anna@rmac.com.au, 0448 692 245

KEY GAINS BY PRODUCT LINE

  • A duty-free quota for 575,000 head of live (male) cattle in the first year, which will grow by 4%/year over five years to 700,000 head; import permits to be issued automatically on an annual basis and without seasonal restrictions
  • Liberalised access for female live cattle exported to Indonesia, with 0% tariff on entry into force of the agreement and no quota or import permit restrictions.
  • Immediate or gradual liberalisation of tariffs applicable to boxed beef and sheepmeat exports to Indonesia – whereby those tariff lines not already benefiting from 0% tariffs secured under AANZFTA, will benefit from either a 0% or 2.5% tariff on entry into force (down from 5%) with the tariffs being eliminated altogether over five years
  • Further information can be accessed here.