Sheep Producers Australia welcomes Indonesia FTA

3 September 2018

Sheep Producers Australia welcomes the announcement of the end of negotiations for a free trade agreement with Indonesia as a potential growth market for Australian sheepmeat.

The Indonesia-Australian Comprehensive Economic Partnership Agreement will see tariffs eliminated for boxed sheepmeat over the next five years, while import permit restrictions will be removed.

SPA Economics, Trade and Industry Affairs Manager Stephen Crisp says Indonesia is currently a small market for Australia but has potential for growth, given its proximity to Australia and the increasing demand from consumers in south-east Asia for sources of animal protein.

“We’re pleased with the market access that has been negotiated and we thank the Australian Government, through the Department for Foreign Affairs and Trade, for opening up further opportunities for the sheep industry,” Mr Crisp said.

“This agreement will create opportunities over time for producers, particularly in mutton supply. Any reduction in tariffs makes it easier to develop markets and Australian export production already has a track record in providing high quality product to Halal markets.

“Australia supplied 1099 tonnes of lamb and 1359 tonnes of mutton to Indonesia in 2017 and we believe this can increase.

“Securing markets is a priority advocacy area for SPA because, while our produce is consumed locally, we have an export focus and building market access supports sheep producers’ profitability. Policy in this space is developed through our Marketing, Market Access and Trade Policy Committee.

“SPA works with the Australian government, Meat & Livestock Australia and local and overseas organisations to build domestic and international markets for Australian lamb and sheepmeat products through producer levy-funded marketing campaigns and providing industry advice for international trade negotiations.”

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