Costs have been removed for Australian exporters accessing our third-largest dairy export market after Australia’s free trade agreement with Indonesia came to life in July 2020. The Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA) provides more certainty for future trade and improved market access for Australian dairy products.
Key benefits of the IA-CEPA include:
- Indonesia will eliminate tariffs on dairy products not already eliminated under the ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA)
- IA-CEPA highlights the importance of trade liberalisation for Australian dairy
- IA-CEPA and AANZFTA, in combination, will provide an estimated saving of over $10.5 million per annum in tariffs that would otherwise be levied
on Australian dairy exports to Indonesia if neither agreement was in force; and - the inclusion of a cooperative mechanism to address non-tariff measures, such as licensing arrangements and product testing, that have traditionally added to the cost of doing business for
Australian exporters.
In consultation with industry and representative groups, Dairy Australia worked to support an Australian dairy position in the IA-CEPA negotiation, providing technical input and advice to inform government negotiators and to support a positive outcome for dairy.
Throughout the IA-CEPA negotiations, the Dairy Australia trade team worked closely with the Australian Government trade negotiators, DFAT and DAWE, industry representative organisations and Australian dairy manufacturers and exporters.
Negotiations were enhanced by Dairy Australia’s targeted engagement program with Indonesia, designed to build relationships while reinforcing awareness and buyer preference for Australian dairy products in that market. Networks from this program provided invaluable contacts within the Indonesian market, enhancing the position of Australian dairy throughout the negotiation process