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Trade to benefit from Indonesia agreement

THE Australian Livestock Exporters’ Council (ALEC) has welcomed the substantial outcomes achieved via the Indonesia-Australia Comprehensive Economic Partnership Agreement (I-A CEPA), which was announced on Friday.

ALEC Independent Chairman, Simon Crean, said I-A CEPA was “economically and strategically significant in a way which aligns with key red meat industry objectives”.

“The agreement will be the catalyst for sustained growth in live cattle exports to Indonesia, which is particularly important for northern Australia,” Mr Crean said.

“The proposed 0% in-quota tariff for live male cattle and liberalised access for female cattle will provide real incentives for exporters and producers to further expand export volumes to Indonesia.”

Mr Crean said the structure of the agreement would support the sustainable expansion of Australian cattle exports to Indonesia – Australia’s largest livestock export market.

In 2017, 512,871 Australian cattle were exported to Indonesia, while for the 2018 calendar year 290,150 Australian cattle have been exported to Indonesia (up to July).

“The agreement complements Indonesia’s policy goals of securing greater access to dietary protein by strengthening market links back to northern Australia’s beef cattle industry and our established live export supply chains in the north which are so ably equipped to support that demand,” Mr Crean said.

“Industry now looks forward to the timeline around the agreement’s formal implementation.

“The livestock export industry gratefully acknowledges the significant efforts of Australian DFAT and DAWR officials during the IA-CEPA negotiations. Both government and industry representatives here in Australia and in Indonesia have made this agreement possible, providing even more optimism about the livestock and red meat relationships we enjoy with our partners in the Indonesian supply chain.”