Australian exporters reliant on airfreight will continue to have access to key international export markets, thanks to a $240 million funding injection to help keep international freight routes and flights operating.

Federal Member for Cowper Pat Conaghan said this commitment by the Morrison-McCormack Government comes on the eve of the Indonesia-Australia free trade agreement kicking off.

“I welcome this landmark trade agreement starting with Indonesia, one of our closest northern neighbours,” he said.

“This agreement will give our exporters a competitive edge in a fast growing economy and I hope it will produce new opportunities for our local dairy, horticulture and professional services sectors.

“I thank Federal Trade Minister Simon Birmingham for his work on the Indonesia-Australia Comprehensive Economic Partnership Agreement and the Deputy Prime Minister Michael McCormack for extending the current International Freight Assistance Mechanism to enable exports to continue.”

Mr Birmingham said one in five jobs in Australia is trade related and enhancing opportunities for the nation’s exporters was crucial to supporting the nation’s economy to recover from COVID-19.

“This is the most comprehensive bilateral trade agreement Indonesia has ever signed,” Mr Birmingham said.

“With a population of over 260 million and a growing middle-class, Indonesia presents huge opportunities for our exporters across a range of sectors including agriculture, education, tourism, energy and mining services.

“For example, our grains growers will now be able to export 500,000 tonnes of feed grains including wheat and barley into Indonesia tariff free. This will provide a significant boost for the Australian grains industry, building on our substantial milling wheat exports.”

Mr McCormack said the temporary $240 million International Freight Assistance Mechamism (IFAM) would be extended until the end of the year.

“This temporary measure has provided an export lifeline to thousands of farmers, fishers and other exporters around Australia during the COVID-19 pandemic,” Mr McCormack said.

“With few international passenger flights at present, restoring supply chains has been vital to maintaining relationships between exporters and their customers around the world.”

So far the IFAM has helped to secure carriage of more than 36,000 tonnes of exports to 50 key international destinations between April and August. By reconnecting global supply chains, the IFAM has also supported the import of critical medical supplies.

In New South Wales, over 640 freight flights have been facilitated carrying over 10,500 tonnes of product to overseas markets. Products have included beef being carried to the US, Singapore, Europe, China and Thailand; dairy products to the Middle East and Malaysia; and bananas, papaya and avocados to Singapore.

For more information on IFAM visit: www.austrade.gov.au/ifam

Media Contact:
Minister McCormack – Dean Shachar 0418 202 860
Minister Birmingham – Benn Ayre 0428 342 325
Mr Conaghan – Liz Spry 0418 928 744