Indonesia Trade Deal Could Remove Burdensome Non-Tariff Barriers
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The White House announced a framework for negotiating a trade agreement with Indonesia. More details are available in this joint statement from the U.S. and Indonesian governments and this White House fact sheet.
U.S. Meat Export Federation (USMEF) Vice President of Economic Analysis Erin Borror points out that while Indonesian tariffs on U.S. red meat are only 5%, the country places a number of burdensome, non-tariff trade barriers on U.S. product, including plant-by-plant inspections of U.S. facilities and a complicated import licensing regime. If those non-tariff barriers can be cleared in an Indonesian trade deal, the immediate opportunity is an estimated $250 million in annual beef sales. Opening Indonesia more freely to U.S. beef could also help offset the impact of the current trade impasse with China by increasing demand for products such as short plates and short ribs.
While Indonesia is a largely Muslim nation, there are more than 30 million non-Muslim residents who are exhibiting a growing demand for U.S. pork. And while U.S. pork faces similar barriers as beef, the small volume of U.S. pork exported there has doubled this year.