STOCK JOURNAL | Indo wheat deal with US raises Aussie concerns about free trade viability

Australian grain growers are raising concerns about a new trade deal between Indonesia and the United States that will see 2 million tonnes of US wheat preferentially supplied into one of Australia’s key export markets.

Indonesia is one of Australia’s most important wheat customers, and the move has prompted concern about what it signals for future market access across the region.

Stock Journal spoke to Grain Producers Australia Chair Barry Large, who said the broader implications of the deal are more concerning than the volume itself.

“We’re worried about the precedent it sets, where geopolitical concerns, rather than free trade, set the market agenda,” he said.

Mr Large said there is a risk other south-east Asian markets could follow a similar path in response to trade pressures.

“You’d have to think they’d be looking at similar sorts of deals in order to retain access to the American market,” he said.

He said Australia’s response must focus on both maintaining competitiveness and continuing to advocate for open markets.

“Australian producers depend on transparent and competitive export markets, and it’s important those markets remain open.”

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