KPPI close to completing 1st safeguard case<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Trade Safeguard Committee (KPPI), is to announce
\nsoon its first-ever decision, which concerns the question as to
\nwhether it is necessary for the government to protect the local
\nceramic tableware industry from cheap imports, a senior official
\nat the Ministry of Trade says.<\/p>\n
The Ministry's director of trade protection, Slamet Effendi,
\nsaid on Monday that the committee was set to finish its report on
\nMay 5, and would then pass on its recommendations to the Minister
\nof Trade.<\/p>\n
\"The report will decide whether or not the cheap imports have
\ndamaged local industry,\" Slamet said after a public hearing with
\nstakeholders in the ceramic tableware industry.<\/p>\n
Among the participants at the hearing were the Indonesian
\nCeramic Industry Association (Asaki) as the petitioner, lawyers
\nrepresenting importers, representatives from the embassies of the
\ncountries concerned, including China, Thailand, the European
\nUnion and Australia.<\/p>\n
Indonesia's tableware industry has been losing out to cheap
\nimports -- mostly from China -- and was now seeking state
\nprotection, said Slamet, who is also the KPPI's executive
\nsecretary.<\/p>\n
According to Asaki, surging imports have cost the local
\nindustry dearly through decreased market share, factory closures
\nand layoffs.<\/p>\n
Asaki's foreign affairs director, Indra Kangean, earlier said
\nthat imports of tableware had increased rapidly over the past few
\nyears to 45,000 tons in 2003 from 20,000 tons in 2001, of which
\nover 95 percent originated from China.<\/p>\n
As a result, the market share of imported products had
\nincreased to 65 percent from 50 percent in 2001. This situation
\nhad forced five tableware factories to close down and lay off
\ntheir workers.<\/p>\n
The industry used to employ 20,000 workers directly, but now
\nonly employed 10,000, Indra said.<\/p>\n
\"The rest of them have either lost their jobs or are working
\nless hours,\" Indra said, adding that a total of 2,500 workers had
\nbeen laid off over the past two years.<\/p>\n
Responding to the industry's complaints, the Indonesian Trade
\nSafeguard Committee (KPPI) agreed in October to investigate as to
\nwhether damage had been caused by the cheap imports.<\/p>\n
Under World Trade Organization rules, the government can
\nimpose a provisional measure on an imported product for a maximum
\nof 200 days after the committee launches an official
\ninvestigation.<\/p>\n
In January, the government formally increased its import
\nduties on tableware products to 30 percent from 5 percent in
\nJanuary in the expectation that this would temporarily stem the
\nsurging imports.<\/p>\n
Should the investigation confirm that damage has been caused,
\nformal safeguard measures will be applied, which could be in the
\nform of increased tariffs, the setting of a quota, or a
\ncombination of both.<\/p>\n
Such measures, however, can only remain in force initially for
\na maximum of four years, and the industry will be required to
\nembark on a gradual liberalization.<\/p>\n
However, Slamet pointed out that the WTO allows developing
\ncountries like Indonesia to extend such measures up to a maximum
\nof 10 years.<\/p>\n
Tableware Imports in RI 1999-2003<\/p>\n
Year Imports Market share Local demand<\/p>\n
(tons) (percent) (tons)<\/p>\n
1999 12,000 45 25,000<\/p>\n
2000 24,000 51 35,000<\/p>\n
2001 20,000 50 40,000<\/p>\n
2002 37,000 60 52,000<\/p>\n
2003 45,000 65 58,000<\/p>\n
Source: Central Statistic Agency (BPS) and Asaki<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/kppi-close-to-completing-1st-safeguard-case-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }