Sugar Breakthrough Paves Way for Indonesia-Australia Trade Deal
- Sugar agreement comes as two-way trade remains tepid
- Broader trade talks have moved slowly amid political spats
A harvester loads a truck with sugarcane at a plantation near Ayr, Queensland, Australia, on Sunday, Aug. 9, 2015. Global sugar prices reached a six-year low in August as rising production levels and exports from countries like Brazil and India has put pressure on prices.
Photographer: Carla Gottgens/BloombergAustralia is pinning its hopes on sugar to revitalize exports to Indonesia, as it seeks momentum for a free trade agreement that has been mooted for nearly a decade.
With two-way trade at its lowest since 2009, Australian Trade Minister Steve Ciobo hailed a recent deal to reduce sugar tariffs from 8 percent to 5 percent, bringing the country into line with rate for Southeast Asian nations. Australia is now working on a conclusion of the broader pact “by the end of this year,” he said.