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Indonesia | FAS Negotiating With Indonesia To Clarify U.S. Beef Import Polic...

Published: Jul 01, 2005

Indonesia

FAS Negotiating With Indonesia To Clarify U.S. Beef Import Policy

The Foreign Agriculture Service (FAS) is in discussions with the Ministry of Agriculture in Indonesia to clarify import rules to ensure U.S. beef products will be accepted through August 31. This will allow the Food Safety and Inspection Service (FSIS) to continue to issue export certificates.

FAS is also working toward ensuring the Ministry of Trade agrees to the import rules so product will be accepted by customs in Indonesia.

Unconfirmed news reports have created confusion on import guidelines. Indonesia officially banned U.S. beef Thursday (June 30). USMEF is in close contact with FAS to provide updates on this issue as they are known. 

BSE Update

FAS Working To Reopen Recently Closed U.S. Beef Markets

FAS is in daily contact with all countries recently closed to U.S. beef in effort to reopen those markets as soon as possible. Some countries are waiting for the results of the epidemiology investigation on the BSE case prior to making a decision. The date those results will be available is unknown. Countries that closed to U.S. beef since the second BSE case are Taiwan, Indonesia, Philippines, Romania, Tahiti, Belize, St. Vincent and the Grenadines and St. Lucia.

Central & South America                                                      

Senate Approves CAFTA

The U.S. Senate passed the Central American Free Trade Agreement (CAFTA) by a vote of 54 to 45, although analysts think the treaty has less support in the U.S. House of Representatives. According to the fast track system, both Houses can only approve or reject, not modify, the treaty.

CAFTA essentially calls for eventual duty-free, quota-free access on all products, and addresses other trade measures among the parties as well. Under the existing terms of the Caribbean Basin Initiative, which CAFTA replaces, nearly all agricultural exports from the CAFTA countries already received duty free treatment in the United States. CAFTA levels the playing field, providing U.S. exporters market access that is better than, or at the very least equal to, that given to other competitor countries.

Under CAFTA, tariffs on the beef products most important to the U.S. beef industry – Prime and Choice cuts – will be eliminated immediately in Central American countries, and the Dominican Republic will immediately establish a TRQ that expands annually as the tariff is phased-out over 15 years. All other tariffs on beef and beef products will be eliminated within 15 years, and earlier in a number of cases. Costa Rica immediately eliminates its tariff on beef offals, while duties on other beef products and beef offals in other CAFTA-DR countries will be phased-out in 5 to 10 years.

Each country in the agreement will establish TRQs on pork cuts, totaling 13,613 MT in total, and these TRQs expand by 5 percent to 15 percent a year. All tariffs will be eliminated within 15 years with safeguards available on certain products in some countries. Central American countries will immediately eliminate tariffs on bacon and some offal products.

Indonesia

FAS Negotiating With Indonesia To Clarify U.S. Beef Import Policy

The Foreign Agriculture Service (FAS) is in discussions with the Ministry of Agriculture in Indonesia to clarify import rules to ensure U.S. beef products will be accepted through August 31. This will allow the Food Safety and Inspection Service (FSIS) to continue to issue export certificates.

FAS is also working toward ensuring the Ministry of Trade agrees to the import rules so product will be accepted by customs in Indonesia.

Unconfirmed news reports have created confusion on import guidelines. Indonesia officially banned U.S. beef Thursday (June 30). USMEF is in close contact with FAS to provide updates on this issue as they are known. 

BSE Update

FAS Working To Reopen Recently Closed U.S. Beef Markets

FAS is in daily contact with all countries recently closed to U.S. beef in effort to reopen those markets as soon as possible. Some countries are waiting for the results of the epidemiology investigation on the BSE case prior to making a decision. The date those results will be available is unknown. Countries that closed to U.S. beef since the second BSE case are Taiwan, Indonesia, Philippines, Romania, Tahiti, Belize, St. Vincent and the Grenadines and St. Lucia.

Central & South America                                                      

Senate Approves CAFTA

The U.S. Senate passed the Central American Free Trade Agreement (CAFTA) by a vote of 54 to 45, although analysts think the treaty has less support in the U.S. House of Representatives. According to the fast track system, both Houses can only approve or reject, not modify, the treaty.

CAFTA essentially calls for eventual duty-free, quota-free access on all products, and addresses other trade measures among the parties as well. Under the existing terms of the Caribbean Basin Initiative, which CAFTA replaces, nearly all agricultural exports from the CAFTA countries already received duty free treatment in the United States. CAFTA levels the playing field, providing U.S. exporters market access that is better than, or at the very least equal to, that given to other competitor countries.

Under CAFTA, tariffs on the beef products most important to the U.S. beef industry – Prime and Choice cuts – will be eliminated immediately in Central American countries, and the Dominican Republic will immediately establish a TRQ that expands annually as the tariff is phased-out over 15 years. All other tariffs on beef and beef products will be eliminated within 15 years, and earlier in a number of cases. Costa Rica immediately eliminates its tariff on beef offals, while duties on other beef products and beef offals in other CAFTA-DR countries will be phased-out in 5 to 10 years.

Each country in the agreement will establish TRQs on pork cuts, totaling 13,613 MT in total, and these TRQs expand by 5 percent to 15 percent a year. All tariffs will be eliminated within 15 years with safeguards available on certain products in some countries. Central American countries will immediately eliminate tariffs on bacon and some offal products.