Sugar tariff cut sweet news for regional cane growers
INDONESIA has announced it will lower tariffs on Australian sugar on the back of a renewed friendship between the countries.
The tariff is expected to be cut from 8% to 5% by the end of the year.
It comes after meetings between Prime Minister Malcolm Turnbull and Indonesian President Joko Widodo and in the middle of the Wilmar-Queensland Sugar marketing dispute.
Canegrowers has described the tariff cut as good news for the Queensland sugar industry, while Member for Dawson George Christensen said sugar growing regions will also benefit.
"That means more money into the pockets of cane growers who sell into Indonesia and therefore more money spent in the local towns and regions they live in," he said.
Mr Christensen said the Indonesian sugar market was worth $344 million in 2015-16, but in recent years the market had been "disadvantaged" by the 8% tariff, "which is hugher than the 5% tariff for ASEAN (Association of Southeast Asian Nations) countries like Thailand".
"Lowering the tariff on Australian sugar to 5% puts us on level playing field with South East Asia nations," he said.
Alongside the proposed sugar tariff cuts, live cattle export conditions will also be broadened