Indonesia-USA pact reshapes dairy trade in Southeast Asia

USA – President Trump has announced a Framework for an Agreement on Reciprocal Trade with Indonesia that will unlock significant market access for American farmers, manufacturers, innovators, and producers.

The agreement sets a powerful precedent by eliminating tariffs on the vast majority of USA exports to Indonesia and pledges to dismantle longstanding nontariff barriers that have previously hindered American dairy products from entering this thriving Asian market.

Several prominent dairy organizations, including the USA Dairy Export Council (USDEC), National Milk Producers Federation (NMPF), the Consortium for Common Food Names (CCFN), and Edge Dairy Farmer Cooperative have applauded this development.

Gregg Doud, president and CEO of NMPF, stated, “This looks like it will be a significant win for U.S. dairy,” he states, emphasizing the potential benefits this deal brings for American dairy farmers and pointing out the significance of such an agreement in fostering trade growth in one of the world’s most populous nations.”

Additionally, the framework has been outlined meticulously in a White House fact sheet, which highlights Indonesia’s commitment to removing tariffs on nearly 99% of USA exports.

The agreement includes recognizing USA regulatory oversight, listing all USA dairy facilities and implementing a transparent mechanism for handling geographical indications (GI) — a crucial element for the protection of common cheese names like Parmesan and feta.

Krysta Harden, president and CEO of USDEC, added, “This deal is poised to strengthen our long-term. While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and nontariff barriers is precisely what our industry needs to create new momentum for USA dairy exports and deeper collaboration with a key Southeast Asian partner.”

The agreement signals a commitment to a fair and balanced approach to GIs — a move that is expected to resonate across global markets and aid in long-term sustainability and competitiveness for U.S. dairy.

Last year, USA exported US$246 million worth of milk powders, whey products, cheese and other dairy ingredients to Indonesia, cementing it as the seventh-largest USA dairy export destination.

This agreement is set to complement ongoing initiatives by NMPF and USDEC to integrate school milk into Indonesia’s new Free Nutritious Meals program, fostering greater collaboration and cementing strong trade relationships.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE