JAKARTA (dpa-AFX) - President Donald Trump has announced a reciprocal trade deal with Indonesia that will provide Americans with market access in Indonesia, and unlock major breakthroughs for US manufacturing, agriculture, and digital sectors.
Under this deal, Indonesia will pay the United States a reciprocal tariff rate of 19 percent.
The key terms of the U.S.-Indonesia Agreement on Reciprocal Trade will include eliminating tariff barriers, breaking down non-tariff barriers for U.S. industrial and agriculture exports, and improving Labor Standards.
Under the deal, Indonesia will eliminate tariff barriers, on a preferential basis, on more than 99 percent of U.S. products exported to Indonesia across all sectors, including for all agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals, the White House said.
Indonesia will address a range of non-tariff barriers, including by exempting U.S. companies and originating goods from local content requirements; accepting vehicles built to U.S. federal motor vehicle safety and emissions standards; accepting FDA certificates and prior marketing authorizations for medical devices and pharmaceuticals; exempting U.S. exports of cosmetics, medical devices, and other manufactured goods from burdensome certification and labeling requirements; removing import restrictions or licensing requirements on U.S. remanufactured goods and their parts; and eliminating pre-shipment inspection or verification requirements on imports of U.S. goods.
As per the agreement, Indonesia will exempt U.S. food and agricultural products from import licensing regimes including its commodity balance policy; ensure transparency and fairness with respect to geographical indications including meats and cheeses; provide permanent Fresh Food of Plant Origin (FFPO) designation for all applicable U.S. plant products; and recognize U.S. regulatory oversight, including listing of all U.S. meat, poultry, and dairy facilities and accepting certificates issued by U.S. regulatory authorities.
U.S. Trade Representative Jamieson Greer said American producers, who have long-faced high tariffs and burdensome requirements, will receive unprecedented access to Indonesia's market and greater certainty for the digital services sector.
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