Cane cutting along the Mackay-Eungella road.
Cane cutting along the Mackay-Eungella road. Stuart Quinn

Tariffs on sugar, cattle exports cut

THE tariff on Australian sugar exported to Indonesia has been slashed to five per cent, after a landmark partnership agreement was signed by the leaders of both nations.

Sugar exports to the archipelago were worth $541million in the 2016/17 financial year.

The tariff on sugar was between 8 and 12 per cent.

Prime Minister Scott Morrison and Indonesian counterpart President Joko Widodo signed off on the Indonesia-Australia Comprehensive Economic Partnership Agreement in Jakarta on Friday.

The agreement includes duty free access for 575,000 head of live cattle a year, growing 4 per cent a year for five years, the tariff on frozen beef and sheep meat reduced to 2.5 per cent immediately and will ultimately be eliminated after five years.

The 5 per cent tariff on Australian honey will also be eliminated.



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