On January 10, 2013, United States Trade Representative (USTR) Ron Kirk announced that the United States is requesting consultations with Indonesia under the dispute settlement provisions of the World Trade Organization (WTO) concerning trade-restrictive measures that appear to be designed to protect Indonesia’s domestic agriculture industry.
The USTR alleges that, in late 2011, Indonesia passed regulations establishing strict non-automatic import licensing requirements for horticultural products. Those regulations were revised in September 2012 to include even more onerous requirements for horticultural imports. The affected products include, but are not limited to, fruits, vegetables, flowers, dried fruits and vegetables and juices.
In addition, Indonesia has maintained a similar non-automatic import licensing and quota regime for beef and other animal product imports. Indonesia recently announced drastic reductions in quotas for beef and other animal product imports, further restricting access to the Indonesian market.
The USTR points out that, through these measures, Indonesia appears to be acting inconsistently with its WTO obligations, including under the General Agreement on Tariffs and Trade 1994 (GATT 1994), Agreement on Import Licensing Procedures and the Agreement on Agriculture.
"Indonesia’s opaque and complex import licensing system affects a wide range of American agricultural exports. It has become a serious impediment to US agricultural exports entering Indonesia, reducing Indonesian consumers’ access to high-quality US products," said Kirk.
Consultations are the first step in the WTO dispute settlement process. Under WTO rules, if the matter is not resolved through consultations within 60 days, the US may request the establishment of a WTO dispute settlement panel.
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