U.S asks for WTO panel on Indonesia car policy<\/p>\n
GENEVA (Reuter): The United States, joining the European Union
\nand Japan in pressuring Indonesia over its car policy, asked the
\nWorld Trade Organization (WTO) yesterday to set up a settlement
\npanel to look into the dispute, officials said.<\/p>\n
Trade officials said Indonesia blocked Washington's first
\nformal request put to a meeting of the WTO's Dispute Settlement
\nBody (DSB) where a country has the right to hold up the creation
\nof a panel the first time it is sought.<\/p>\n
Trade diplomats expected the United States to bring its
\ncomplaint against Jakarta to the next meeting of the WTO body on
\nJuly 30 when the request would be approved automatically.<\/p>\n
The DSB has already set up a panel to consider complaints from
\nthe European Union and Japan on Indonesia's car policy. It would
\nhave from six to nine months to come up with a ruling.<\/p>\n
The United States, like the two other trade powers, argues
\nthat Indonesia's tax and import duty breaks for an Indonesian car
\nfirm headed by Hutomo Mandala Putra, the youngest son of
\nPresident Soeharto, discriminates against its exports and
\nviolates a range of WTO accords.<\/p>\n
The case has wide implications for developing nations in the
\n131-member WTO seeking to build their own industrial base to
\ncompete with goods from the richer economies.<\/p>\n
Indonesia has denied that import and tax concessions enjoyed
\nby the PT Timor Putra Nasional company -- which produces its
\n\"Timor\" sedan car in South Korea at a plant of Kia Motors Corp --
\nbreak WTO rules.<\/p>\n
Indonesia told the DSB, on which all members of the WTO can
\nsit, that it felt the United States \"must have felt pressurized\"
\nto join the EU-Japan move for a panel, trade officials said.<\/p>\n
Washington told the meeting that it decided to press ahead
\nwith the panel request after nearly a year of bilateral talks,
\nincluding intensive discussions in the past two weeks, failed to
\nproduce any sign of movement from Jakarta, trade officials said.<\/p>\n
Washington also said it intended to continue bilateral
\ndiscussions with Jakarta in search of a solution, they added.<\/p>\n
If the panel is set up and its findings are against Indonesia,
\nan appeal can be lodged and an appeals board would then have 60
\ndays to decide. If the final ruling goes against Indonesia, then
\nit would have to bring its policy in line with the panel
\nrecommendations or agree to pay compensation for the value of
\ntrade lost to the complainants.<\/p>\n
If it refused to do either, the WTO could authorize
\ncomplainant states to take trade measures against Jakarta that
\nwould compensate for the losses they have incurred.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-asks-for-wto-panel-on-indonesia-car-policy-1447893297",
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"sponsor": "Okusi Associates",
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