RI national car talks open in Geneva today<\/p>\n
GENEVA (AFP): Bilateral talks aimed at ending a dispute over
\nIndonesia's national car policy, criticized for breaching
\ninternational trade rules, are to open today in Geneva in an
\nattempt to avert outside adjudication.<\/p>\n
Japan, the European Union and the United States in October
\nlodged a complaint with the World Trade Organization (WTO), which
\nallows parties 60 days to consult to try and settle trade sores.<\/p>\n
That period has already lapsed, but the trio are giving talks
\nwith Indonesia another chance.<\/p>\n
\"Under the disputes settlement understanding, we have a right
\nto request establishment of a (disputes) panel after 60 days. We
\nhave passed that (period of time) but we rather requested the
\ncontinuation of consultations,\" a Japanese trade source said here
\nyesterday. \"I hope we're on the way to resolving the issue
\nbilaterally.<\/p>\n
A first round of talks was held in November and the current
\nseries, which will feature separate private meetings, runs until
\nThursday. Japan is slotted in for today and the European Union
\nThursday.<\/p>\n
\"The United States will be meeting with the Indonesians later
\nin the week on a bilateral basis,\" said a U.S. official here.<\/p>\n
The talks are aimed at making Indonesia revoke measures
\nfavoring its national car, which is currently being imported from
\nSouth Korea under a joint venture between PT Timor Putra Nasional
\nand Kia Motors.<\/p>\n
President Soeharto in February ruled that Timor Putra,
\ncontrolled by his youngest son Hutomo Mandala Putra, would be
\ngranted exemptions on import duties and luxury taxes, which add
\nabout 60 percent to the price of other cars in Indonesia.<\/p>\n
The cars, which eventually need to meet a 60 percent local
\ncontent target, will be imported until domestic production begins
\nin 1998.<\/p>\n
\"Basically, there are a number of preferences that the Korean
\nimports are getting, this is the basis of our concern,\" said a
\nEuropean trade official here. \"Also separate treatment is being
\ngiven on local content which doesn't conform with TRIMs (trade
\nrelated investment measures)\".<\/p>\n
Under a TRIM agreement, the WTO seeks to ban investment
\npolicies that distort trade -- including the imposition of
\nparticular levels of local procurement by an enterprise.<\/p>\n
If the three parties fail to reach agreement with Indonesia,
\nthey could ask the WTO to set up a dispute panel to examine the
\ncase.<\/p>\n
\"It is one option that we have to seriously think about,\" said
\nthe Japanese trade source.<\/p>\n
\"We are very dissatisfied with (Indonesia's) measures
\nthemselves. If there are no positive developments from the
\nIndonesian side, then obviously there is the possibility of
\nrequesting a panel,\" the European trade official said.<\/p>\n
A panel must convene within 30 days after its establishment
\nand issue a final report within six months.<\/p>\n
Reports from Seoul have quoted a Kia Motors executive as
\nsaying that Kia and Timor Putra planned to produce 50,000 vans
\nper year starting in 1998 and added that the vehicles would
\nobtain the same tax treatment as the Timor Sedan.<\/p>\n
The joint venture has so far imported at least 10,500 Timor
\nSedans from South Korea.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-national-car-talks-open-in-geneva-today-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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