Indonesia seeks zero tariffs from US on cocoa, coffee and palm oil exports

Indonesia’s economic affairs coordinating ministry said the country’s government is negotiating with the United States for zero import tariffs on products such as cocoa, coffee and palm oil.

According to Indonesian New Agency, the Indonesian negotiating team continues to push for the removal of tariffs on goods that are not produced in the United States.

According to officials, Indonesian products such as cocoa, coffee, palm oil and essential minerals have high export value and the Indonesian government has reached a deal with the U.S. Trade Representative (USTR) for further negotiations.

Indonesian President Prabowo Subianto and U.S. President Donald Trump previously reached an agreement under which Indonesia will pay a 19% tariff on every product exported to the U.S., while U.S. exports to Indonesia will be exempt from tariff and non-tariff barriers.

After reducing the tariff from 32% to 19%, Indonesia now has one of the lowest rates in Southeast Asia. However, the tariff is still higher than 10% in Singapore and the country’s authorities intend to continue the fight to reduce rates. Recall that Indonesia remains the main supplier of palm oil to the United States with a share of 85%.

Tags: palm oil, cocoa, Indonesia