US and Indonesia sign trade deal to slash tariffs to 19%

WASHINGTON — The United States and Indonesia have signed a reciprocal trade agreement, with Washington lowering tariffs on goods exported by the Southeast Asian country.The signing of the agreement by Indonesia’s senior economic minister Airlangga Hartarto and US Trade Representative Jamieson Greer followed months of negotiations, after Washington last year agreed to lower Indonesia’s exports to the United States to 19 percent, down from an initial rate of 32 percent. “This deal respects the sovereignty of both countries,” Airlangga told Indonesian media, describing the deal as a “win-win” for both countries. Washington said it granted tariff exemptions on some Indonesian goods, including certain clothing and textiles that are produced with cotton and man-made materials from the US.Greer said the agreement will “breaks down trade barriers” while advancing the interests of the American people.The deal was signed during Indonesian President Prabowo Subianto’s visit to Washington to attend the first meeting of the Trump-led “Board of Peace” to discuss the reconstruction of Gaza on Thursday.The White House said that Indonesia will open up its markets by accepting US car safety and emissions guidelines, as well as American food and drug standards for its medical devices and pharmaceutical products.Indonesia will also ease barriers on American agricultural and technology goods being sold in its market.The deal takes effect 90 days after both sides complete the related legal procedures, but changes could still occur if both sides agree, Airlangga said. — Agencies