Car policy talks to go on outside WTO, says Tunky<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
\nplans to discuss further Indonesia's controversial car policy
\nwith his counterparts from Japan, the United States and the
\nEuropean Union (EU) on the sidelines of the World Trade
\nOrganization (WTO) meeting.<\/p>\n
He said more discussion was needed at the meeting in Singapore
\nnext week to solve the dispute.<\/p>\n
The minister said Indonesia might enter a third round of talks
\nwith Japan, while bilateral talks with the United States and
\nEurope were continuing.<\/p>\n
The government would rather propose another round of talks
\nthan leave the dispute to the WTO arbitration panel, he said,
\ncommenting on Japan's and Indonesia's failure to resolve the
\ndispute in Geneva recently.<\/p>\n
If ongoing bilateral talks with the U.S. and EU also failed,
\nthe government might pursue a similar approach, he said.<\/p>\n
Tunky said discussions on Indonesia's national car policy
\nwould not be on the WTO agenda in Singapore.<\/p>\n
\"Of course, we shall hold talks outside the official forum at
\nthe WTO meeting. We will probably find an ideal solution to the
\nproblem,\" he said.<\/p>\n
Japan, the U.S. and EU are protesting the national car policy
\nwhich they say breaches international trade rules.<\/p>\n
The policy gives PT Timor Putra Nasional, owned by President
\nSoeharto's son Hutomo Mandala Putra, the sole right to develop
\nnational cars. The firm does not have to pay duties to import its
\nsedans from its partner Kia Motors of South Korea, before it
\nopens its own plants.<\/p>\n
Japan, the U.S. and EU filed complaints with the WTO in
\nOctober, demanding that Indonesia revoke its policy. There is a
\n60-day consultation period with Indonesia before they can request
\nthat an arbitration panel examine the case.<\/p>\n
Japan and Indonesia have just completed their second round of
\ntalks to no avail, while talks with the U.S and EU are expected
\nto end this week.<\/p>\n
After the failed second round of talks, a Japanese official
\nsaid his country was waiting for Indonesia's talks with the U.S.
\nand EU to end before deciding whether to ask an arbitration panel
\nto examine the case.<\/p>\n
\"No decision has yet been made, but we are not eliminating the
\npossibility of a panel,\" the official told AFP.<\/p>\n
Tunky said yesterday he was waiting for talks with the U.S and
\nEU to end before consulting with other ministers and President
\nSoeharto on further action.<\/p>\n
He expected he would discuss the issue with the President soon
\nafter the second-round talks ended.<\/p>\n
Timor Putra is exempted from import duties on luxury cars and
\ntheir components, which add 60 percent to the price of other cars
\nin Indonesia. The firm has imported 10,500 sedans from Kia Motors
\nwhich carry the Timor brand.<\/p>\n
The company is allowed to import the sedans duty free until it
\nopens its plants in 1998. The government demands that after the
\ncompany has produced cars for three years it must produce them
\nwith 60 percent local content. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/car-policy-talks-to-go-on-outside-wto-says-tunky-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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