BrownfieldAgNews reports:
The White House has released more details about the U.S.- Indonesia trade deal and what it means for agriculture.
Indonesia has agreed to purchase $4.5 billion worth of U.S. ag products including soybeans, soybean meal, wheat and cotton.
Ben Brown, an extension ag economist with the University of Missouri, says while Indonesia isn’t the largest trading partner with U.S. agriculture, purchase commitments from this country and others can add up.
“One point is never a trend, but two points, you can draw a line. If we start to see more frameworks that include purchase agreements, it turns us into a new phase where now all of a sudden, trade pacts with China, Colombia, Japan and Mexico, start to become even bigger deals because of the opportunity it includes.”
On social media, President Trump says Indonesia will eliminate 99 percent of their tariff barriers. With the U.S. selling American made products to Indonesia at a tariff rate of zero, while Indonesia pays 19 percent on all their products coming into the United States.
A fact sheet says Indonesia has also agreed to address non-tariff trade barriers for U.S. ag exports, including geographical indications and recognizing US. Regulatory oversight of U.S. meat, poultry and dairy facilities.
The U.S. and Indonesia are expected to negotiate and finalize the agreement in the coming weeks.
