The Indonesian tariff on Australian mandarins went suddenly from 5 per cent to 25 per cent in 2005; this year, it was due to be reduced to 20 per cent, and then further to 10 per cent in 2010.
Under the terms of the Australia-New Zealand-ASEAN free trade agreement (FTA) signed two weeks ago, however, that tariff has been locked at 25 per cent for the next 16 years, a result that has baffled and angered Australia’s mandarin growers, according to The Land.
“We were already having trouble with the Indonesian tariff, which was increased from 5 per cent to 25 per cent in 2005 for no reason,” said Queensland Citrus Growers president Nick Ulcoq.
“We have made numerous approaches to governments – ministers, State and Federal, and departmental officials – to get this tariff overturned – but we have not seen any improvement.”
Under the new FTA the Indonesian tariff will drop to 18.75 per cent in 2025.
“QCC has written to the Minister for Trade, Simon Cream, seeking an explanation of this strange outcome,” Mr Ulcoq told The Land.
“We certainly don't understand how a free trade negotiation process can come up with an outcome which takes your terms of trade with an important trading partner backwards.
“The 2005 tariff increase has already caused a significant decline in Australia's mandarin exports to Indonesia, from A$8m per annum prior to 2005 to A$3-4m per year since then.”
Indonesia is a major market for Australian mandarins, the Murcott variety in particular.
