The United States and Indonesia have reached a landmark trade agreement that will significantly expand market access for US agricultural exports, including poultry, beef, and pork, by eliminating most tariff barriers and easing import restrictions, according to announcement from the White House.
In addition to lowering tariff barriers, Indonesia will recognize “U.S. regulatory oversight,” including around export facilities, according to the fact sheet. U.S. export facilities currently have to be audited by Indonesian officials to export to the country.
U.S. tariffs on Indonesian imports would be set at 19% under the deal, which is described in the release as an “Agreement on Reciprocal Trade.”
The joint statement notes that the U.S. and Indonesia will continue to “negotiate and finalize the Agreement on Reciprocal Trade” in the coming weeks.
In addition to the Indonesia deal, the White House on Wednesday said Japan will buy $8 billion of U.S. agriculture and other goods under a new trade pact.
President Trump said the pact would leave 15% U.S. tariffs in place on Japanese exports. Meanwhile, Japan would increase market access for U.S. agricultural products, cars and trucks, and other exports, and make investments in the U.S. worth $550 billion.
Accordingly, Japan will increase import quotas for U.S. rice by 75%, according to a White House fact sheet published Wednesday, and commit to purchasing $8 billion of U.S. goods, including corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel.
