The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) was signed by the Australian government on Monday (March 4, 2019) and launches a new chapter in economic relations between our two countries.
As one of the fastest growing economies, Indonesia presents a significant opportunity for Australian businesses. By some estimates, Indonesia will be the world’s fifth-largest economy by 2030 and the IA-CEPA ensures Australia is well-placed to deepen economic cooperation and share in Indonesia’s growth.
In 2017-18, total two-way trade in goods and services with Indonesia was worth $16.8 billion, making Indonesia our 13th largest trading partner. Indonesia is a growing market for Australian goods and services exporters and the IA-CEPA will provide Australian and Indonesian businesses with the opportunity to expand and diversify this economic partnership.
But, what does the IA-CEPA mean for the Australian seafood industry? We’ve compiled a list of some of the key points from the agreement that will be impact our industry:
- An increase in work and holiday visas for Indonesians from 1000 to 5000. This will make a big difference for producers who need seasonal workers;
- Reduction in non-tariff barriers to trade;
- A simplification of paperwork;
- Preferential deals will be put in place, or duty will be removed, for more than 99 per cent of exports to Indonesia;
- All Indonesian goods exports will enter Australia duty free; and
- There is the possibility we will see an increase in Indonesian seafood available for the Australian market;
- Click here to read more.
Minister for Agriculture and Water Resources David Littleproud said the deal would help Australians sell more product.
“We’re giving our farmers more options and creating competition for Australian produce,” he said.
What happens now?
Australia and Indonesia will now follow their respective domestic treaty making processes to bring IA-CEPA into force. For Australia, this will include tabling the text of the agreement in Parliament and an inquiry by the Joint Standing Committee on Treaties.
Read the full text agreement here.