According to industry association AUSVEG, the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will help Australian vegetable exporters trade into the growing Indonesian market, welcoming the new agreement.

The trade will commence on 5 July, and will create the framework for “a new era of closer economic engagement” between the two countries, providing more opportunities for Australia’s fresh vegetable exporters.

AUSVEG national manager – export development Michael Coote said that despite the current economic climate, demand for Australian fresh vegetables in export markets has remained strong, with the new agreement expected to mutually benefit both nations.

“The agreement to increase import quotas and decrease tariffs for carrot and potato exports – two of the Australian vegetable industry’s key export crops – should lead to an immediate increase in the trade of over AUD$15 million in annual trade, an increase of over 300 per cent in current trade values of fresh vegetables to Indonesia,” said Coote.

“The IA-CEPA is an important trade agreement that aligns closely with our industry’s increased activities in market development, which includes Indonesia’s continued participation in the AUSVEG Reverse Trade Mission that allows buyers from key export markets to visit Australian vegetable growers and see first-hand the high-quality produce for which our growers are renowned around the world.”

As reported on foodanddrinkbusiness.com.au, in 2019, Australia’s global fresh vegetable exports were valued at $299 million and in the 2018/19 financial year, Australian vegetable exports to Indonesia were valued at $5 million. Potatoes accounted for more than 40 per cent of this total.

The IA-CEPA is expected to increase import quota to 5000 tonnes of carrots and 10,000 tonnes of potatoes per year. The quota is expected to grow to 10,000 tonnes per year after 10 years for carrots, and 12,500 tonnes per year after five years for potatoes, with a decreasing tariff schedule during this time.