US Dairy Cheers Indonesia Trade Deal: Tariffs Slashed

The Edge Dairy Farmer Cooperative, a major player in the U.S. dairy sector, has expressed strong support for the new trade agreement between the United States and Indonesia. This strategic move is timely, given Indonesia's role as the seventh-largest export market for U.S. dairy, with purchases amounting to approximately $245 million in 2024. The new framework paves the way for enhanced dairy trade between these nations.

The framework's key feature is the substantial reduction of tariff barriers on over 99% of U.S. exports, which includes dairy products. This is expected to make U.S. milk producers more competitive in the Indonesian market by lowering costs. In addition, the trade framework aims to eliminate non-tariff barriers, streamlining the importation process of U.S. food and agricultural products by exempting them from Indonesia's complex import licensing regimes.

Furthermore, the agreement addresses transparency and fairness in the use of geographical indications (GIs) for specialized cheese and meat products. Indonesia also agrees to recognize U.S. regulatory oversight, facilitating easier market entry for U.S. dairy companies by accepting certificates from U.S. authorities.

Heidi Fischer, President of the Edge Dairy Farmer Cooperative, highlighted the optimism within the sector, stating that this trade arrangement presents new opportunities for U.S. dairy exports, contributing to the industry's stability and reinforcing its international position.