Indonesia Must Import US Apples and Rice in New Trade Pact
Indonesia has committed to import $4.5 billion worth of U.S. agricultural products under the ART trade pact. The agreement includes large annual purchases of soybeans, wheat, cotton and corn, along with fruits, beef and ethanol, aiming to deepen trade ties while ensuring Indonesia keeps markets open without restrictive import barriers.
EMPO.CO, Jakarta – Indonesia is now obligated to import agricultural products from the United States worth US$4.5 billion, as part of the trade agreement established in the Agreement of Reciprocal Trade (ART).
This obligation is detailed in the fourth appendix of the ART document, titled “Purchase Commitment,” within the agricultural products category.
Under the first point, Indonesia is required to support and facilitate commercial agreements to import agricultural commodities from the United States, including cotton, flour, rice, and corn.
Below are the details of Indonesia’s import contracts for agricultural commodities from the United States:
1. Facilitate commercial agreements to import at least 163,000 tons of U.S. cotton annually for five years;
2. Facilitate commercial agreements to import at least 3.5 million tons of U.S. soybeans annually for five years;
3. Facilitate commercial agreements to import at least 3.8 million tons of U.S. soybean flour annually for five years;
4. Facilitate commercial agreements to import at least 2 million tons of U.S. wheat annually for five years.
Under the second point, the United States obliges Indonesia to increase imports of its agricultural products, as detailed below.
1. Indonesia is obligated to import more than 26,000 metric tons of U.S. apples annually.
2. Indonesia is obligated to import more than 50,000 metric tons of U.S. beef and beef products annually.
3. Indonesia is obligated to import more than 3,000 metric tons of U.S. citrus fruits annually.
4. Indonesia is obligated to import more than 100,000 metric tons of U.S. corn annually.
5. Indonesia is obligated to import more than 150,000 metric tons of U.S. corn gluten flour annually.
6. Indonesia is obligated to import more than 150,000 metric tons of U.S. cotton annually after five years.
7. Indonesia is obligated to import more than 1,000 metric tons of U.S. ethanol annually.
8. Indonesia is obligated to import more than 5,000 metric tons of fresh grapes from the U.S. annually.
9. Indonesia is obligated to import more than 1,000 metric tons of U.S. rice annually.
10. Indonesia is obligated to import more than 3.5 million metric tons of U.S. soybeans annually after five years.
11. Indonesia is obligated to import more than 200,000 metric tons of processed soybeans from the U.S. annually after five years.
12. Indonesia is obligated to import more than 1.3 million metric tons of U.S. wheat annually after five years.
The third and final point of the provision states that the United States will not consider Indonesia in violation of these commitments if the annual import volume specified in the second point fails to meet the prescribed quantity, provided that the United States deems that Indonesia has not imposed trade barriers that restrict or prevent the import of said agricultural commodities.
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Source : Tempo.co
