U.S. Wheat Associates (USW) today welcomed the announcement of an agreed-upon framework between the U.S. government and the Republic of Indonesia for negotiating an Agreement on Reciprocal Trade (ART).

The proposed trade deal is expected to directly benefit U.S. wheat farmers through the removal of Indonesian tariffs on 99% of U.S. products, a reduction in non-tariff barriers, and new purchase commitments for U.S. agricultural products, including wheat.

This development follows a major milestone achieved earlier this month when USW and APTINDO, Indonesia’s flour milling association, signed a Memorandum of Understanding (MOU). Under this landmark agreement, APTINDO committed to doubling its annual purchases of U.S. wheat to 1 million metric tons (36.7 million bushels) each year for the next five years, reflecting the rapid growth in demand for wheat foods in Indonesia.

“We are excited and grateful to track this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry,” said Mike Spier, USW President and CEO. “We thank the Trump Administration, the U.S. Trade Representative and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) for their continued work on behalf of American wheat farmers.”

USW looks forward to the successful negotiation of the ART, anticipating further opportunities to strengthen the economic and trade relations between the United States and Indonesia, ensuring continued growth and market access for high-quality U.S. wheat.