US Claims to ‘Won’ Trade Agreement with Indonesia

US Claims to ‘Won’ Trade Agreement with Indonesia

The United States (US) stated that the trade agreement with Indonesia which was signed on February 19 in Washington DC is a historic agreement that benefits domestic industry.

The Office of the United States Trade Representative (USTR) stated that the agreement had received investment of around US$33 billion from Indonesia.

This includes purchases of energy commodities worth US$15 billion, aerospace products worth US$13.5 billion, and agricultural products worth US$4.5 billion.

“President Trump’s trade agreement with Indonesia opens up access for American exporters to the world’s fourth most populous country, creating meaningful commercial opportunities for US farmers and manufacturers,” USTR wrote.

Hours after the deal was signed, the US Supreme Court overturned Trump’s retaliatory tariffs, to which Trump responded by imposing new global tariffs of 15%.

In its official statement, USTR explained several media reports related to the trade agreement with Indonesia.

The agency also cited statements by several US businessmen who praised Trump’s actions.

“Thank you to Ambassador Greer and the USTR team for their efforts in securing expanded access that will directly increase demand for U.S. dairy products,” said National Milk Producers Federation President and CEO Gregg Doud.

The President and CEO of the United States Meat Export Federation, Dan Halstrom, also said the same thing.

According to him, this new agreement overcomes many obstacles previously faced by Indonesia and its successful implementation will allow Indonesian importers and consumers to gain meaningful and consistent access to US beef for the first time.

Previous barriers have been removed through trade agreements

“The value of exports could reach between US$400 million to US$500 million immediately after implementation. American pork exports were also previously restricted by Indonesia’s import licensing regime as well as limited approval by American factories.

“These barriers are removed through this agreement, allowing for further growth in U.S. pork exports, including further processed products,” he said.

Meanwhile, Growth Energy CEO Emily Skor assesses that the new trade framework with Indonesia is a glimmer of new hope for the US agricultural sector.

According to him, implementing a 10 percent ethanol blend at the national level has the potential to open a market of 900 million gallons for US producers and farmers.

“We applaud President Trump, Ambassador Greer and Secretary Rollins for their continued commitment to unlocking America’s energy potential and removing unfair barriers to exports from rural America,” he said.

Through this agreement, the two countries will form a Board of Trade which will act as an intermediary body if trade problems arise between Indonesia and the US.