- US tree fruit group praises Indonesia trade deal easing long-standing import restrictions.
- Agreement removes tariffs and licensing barriers, improving access for American apple exports.
- Deal expected to expand shipments, strengthen bilateral trade, and benefit US growers.
The Northwest Horticultural Council (NHC) represents apple and pear and cherry growers who work in Washington and Oregon and Idaho.
The organization announced its support for a new United States-Indonesia trade agreement because they believe it will create major benefits for American tree fruit exporters.
The agreement was finalized during Indonesian President Prabowo Subianto’s visit to Washington, where both governments agreed to remove key barriers to agricultural trade.
Under the deal, Indonesia has pledged to eliminate tariffs on more than 99 % of U.S. exports including agricultural goods and to exempt American food and farm shipments from its import licensing requirements which had previously caused multi-week delays for U.S. apples entering the Indonesian market.
The NHC highlighted this exemption as a crucial breakthrough, saying it will help reduce delays and make U.S. tree fruit more competitive in the Indonesian market.
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The new agreement requires Indonesia to buy 26000 tonnes of American apples every year which equals 1.4 million cartons. This commitment will result in increased trade between American apple farmers and Indonesian importers which will eventually lead to doubled U.S tree fruit exports to Indonesia.
The U.S apple export market to Indonesia has decreased by 70 percent since 2012 when the country implemented strict import licensing regulations despite the World Trade Organization ruling against those regulations.
NHC President Mark Powers commended the work of U.S. negotiators because the agreement establishes solutions to critical trade obstacles which existed before the deal.
The U.S. tree fruit industry will benefit from improved market access and decreased trade restrictions which will enable the industry to expand its exports and build a stronger presence in one of Southeast Asia's most rapidly expanding markets.