Indonesia Trade Talks and Ag Trade Deficit Forecast
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**A tariff and trade deal between Indonesia and the U.S., on the brink of collapse last month, now appears to have been resolved.
Indonesia’s chief trade negotiator said the two sides have agreed on “all substantial issues,” paving the way for an agreement signing by the end of January.
The main issue was providing balanced market access for American products, AND market access for Indonesia into the U.S. market, its second biggest export market.
**The USDA is forecasting the agricultural trade deficit will shrink in 2026 more than previously anticipated.
Agri-Pulse reports the trade deficit is expected to drop from $43.7 billion in fiscal year 2025 to $37 billion in 2026.
An August USDA report predicted a trade deficit of $41.5 billion in this fiscal year.
USDA’s export prediction for FY2026 is now $173 billion, up from the projected $169 billion in August.
**The Office of the U.S. Trade Representative welcomed Julie Callahan as its new Chief Agricultural Negotiator.
The U.S. Grains and BioProducts Council applauded the news, saying, she’s a seasoned professional with years of experience in sensitive trade negotiations.
The National Cattlemen’s Beef Association reacted positively to the announcement, saying President Trump has made it a priority to sign new trade deals and open new markets, and we look forward to working with Ambassador Callahan.
