The Northwest Horticultural Council (NHC) has welcomed a newly finalised reciprocal trade agreement between the United States and Indonesia, describing it as a positive development for tree fruit growers in the Pacific Northwest.
The agreement was announced last week following meetings in Washington between officials from the Trump administration and Indonesian President Prabowo Subianto. According to a statement from the White House, Indonesia has agreed to eliminate tariffs on more than 99 per cent of US exports, including agricultural goods. The deal also removes import licensing requirements for US food and agricultural shipments.
The NHC, which represents growers, packers, and shippers of apples, pears, and cherries in Washington, Oregon, and Idaho, highlighted the removal of import licensing requirements as a significant change. The group previously cited Indonesia’s licensing system as the cause of periodic market disruptions that affected US apple exports.
Under the agreement, Indonesia will eliminate a 5 per cent tariff on US apples, pears, and cherries. In addition, Indonesia has committed to purchasing 1.4 million 40lb (18kg) cartons of US apples annually, equivalent to approximately 26,000 tonnes.
NHC president Mark Powers said the organisation supports the efforts of President Donald Trump, Ambassador Greer, and staff at the Office of the United States Trade Representative in securing the agreement. He noted that resolving long-standing licensing barriers, reducing tariffs, and establishing a purchase commitment could help increase US apple exports to Indonesia.
According to the NHC, US apple exports to Indonesia have declined by around 70 per cent since horticultural import licensing requirements were introduced in 2012. The organisation also referenced a 2016 ruling by the World Trade Organization, which determined that Indonesia’s import licensing scheme unfairly restricted trade. Despite that ruling, the licensing framework had remained in place until the current agreement.
During the 2024/25 season, Washington apple growers exported nearly 700,000 40lb cartons of apples to Indonesia. The NHC estimates that the removal of trade barriers under the new deal could increase exports by up to US$25 million annually.
Other US fruit sectors are also expected to benefit. Indonesia has committed to importing 5,000 tonnes of US grapes each year and 3,000 tonnes of US citrus. The agreement eliminates existing duties on citrus products, including mandarins and clementines, which previously faced tariffs of 20 per cent, as well as lemons, limes, and grapefruit, which had been subject to 5 per cent duties.
Indonesian officials have stated that the bilateral trade agreement remains in effect despite a recent ruling by the Supreme Court concerning the administration’s emergency tariff authority. Coordinating Minister for Economic Affairs Airlangga Hartarto told local media that the US-Indonesia agreement operates under a separate mechanism and continues to move forward.
Industry representatives say the agreement may strengthen agricultural trade flows between the two countries and provide expanded market access for US fruit exporters.
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