Indonesia signs deal on yearly export quota of 165,000 tonnes of cassava...

Indonesia signs deal on yearly export quota of 165,000 tonnes of cassava to EU

249
0
SHARE
  • The pact allows the Southeast Asian country to export about 165,000 tonnes of cassava to the EU each year at a tax rate of 6%
  • Indonesia and the EU renewed the GATT Agreement on Modification of Concessions on Tariff Rate Quotas on Manioc (Cassava) last May 11
  • It is a chance for Indonesia to boost agricultural exports amid stagnant negotiations at the WTO

Indonesia and the European Union (EU) have successfully finished the amendments of their tariff rate quotas (TRQ) on cassava products after the UK left the union, allowing the export of about 165,000 tonnes of Indonesian cassava to the EU yearly.

Indonesian Ambassador to the World Trade Organization (WTO) Syamsul Bahri Siregar and Portuguese Ambassador to the EU Nuno Brito, who represents the EU, signed the deal, which allows the Southeast Asian country to export about 165,000 tonnes of cassava to the union each year at a tax rate of 6%, according to a report from Vietnam News Agency (VNA).

According to a release by the Indonesian Embassy in Brussels, Indonesia and the EU renewed the GATT Agreement on Modification of Concessions on Tariff Rate Quotas on Manioc (Cassava) on May 11, 2021 in Brussels, Belgium.

Syamsul said the agreement is the result of six rounds of negotiations since 2018, said VNA.

It is a chance for Indonesia to boost agricultural exports amid stagnant negotiations at the WTO. Indonesia has also faced many challenges to sell its farm produce in the EU market, he added.

The WTO’s tariff rate quotas mechanism aims to offer lower tariffs within the quotas which are decided by the import country to a particular country.

With the lower tax rate, Indonesia’s cassava products will have higher competitiveness in the EU market.

Photo credits: Embassy of Indonesia and Portugal Mission to the EU

LEAVE A REPLY

18 + 15 =