The United States and Indonesia have finalised a trade agreement that expands market access for American beef into one of the world’s largest halal protein markets.
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Under the agreement, Indonesia will eliminate tariff barriers on more than 99 percent of US exports, including agricultural products, while committing to purchase billions of dollars’ worth of American goods.
In return, the United States will maintain a 19 percent tariff on most Indonesian imports, down from 32 percent previously.
For the US cattle sector, the headline outcome is duty-free access for boxed beef into Indonesia, a market where American product has historically faced substantial tariff and non-tariff hurdles.
The National Cattlemen’s Beef Association (NCBA) said Indonesia has committed to purchase at least 50,000 metric tonnes of US beef annually.
The deal also includes Indonesian recognition of US Department of Agriculture (USDA) authority on food safety and animal health, a move expected to streamline market entry.
NCBA president Gene Copenhaver said the agreement opens the door to the world’s fourth-most populous nation and the largest halal beef market globally.
“US beef exports to Indonesia have faced numerous tariff and non-tariff trade barriers, which has made it incredibly difficult to develop any type of market presence. 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,” he said.
“When combined with the Taiwan trade deal signed last week, US cattle producers now have more market access than they have had in decades. NCBA thanks President Trump and US Trade Representative Ambassador Jamieson Greer for their diligent work to sign this trade deal to the benefit of American producers.”
Beyond beef, Indonesia has agreed to lift or ease a wide range of non-tariff barriers affecting US agriculture, including removing import licensing requirements on food and farm products and improving transparency around geographical indications covering meats and cheeses.
US Trade Representative Jamieson Greer described the pact as a landmark step that will “break down trade barriers” and deliver unprecedented access for American exporters across agriculture, manufacturing and digital sectors.
The agreement is scheduled to take effect within 90 days, subject to domestic procedures in both countries.
While US export beef supply is currently limited due to an historic herd shortage, the move signals a more competitive US presence in Indonesia in future.
Under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) signed in 2018, Australian boxed beef exports to Indonesia also face zero duties.
Like previous comment, I hope the Indonesian authorities put a verification process in place on the US side to ensure the meat is 100% halal.
Most US beef producers don’t know what halal REALLY means, it’s importance & unfortunately don’t care. Probably the one exception is Harris Ranch.
Anyway hopefully this works out! 🤞
I hope that the beef sold is verified Halal otherwise, the deal will cause problems for US exporters and there will be an extremely negative reaction in Indonesia.
My father is a small beef producer in Australia and we will see how this affects cattle prices.
A lot of beef eaten in Indonesia comes from Austrdlian export of live cattle, the live cattle export industry will probably not be affected.
Indonesia already imports about the same quantity of boxed buffalo meat from Australia, The buffalo are wild caught, not farmed and exposed to agricultural chemicals. Most Bakso in Indonesia can be traced to this product.
This meat can be produced and shipped to Indonesia at less cost than beerf produced in USA .
I am not too concerned this will affect the cattle prices in Australia.
Indonesian people will purchase the same quality beef from Australia if it is cheaper.
Let’s see if Indonesia is able to meet this target as well as the targets of the other trade deals.