WTO acknowledges Indonesia for trade liberalization moves<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The World Trade Organization (WTO) has praised Indonesian
\nefforts to liberalize its trade policies over the past four
\nyears, saying the move had stabilized its economy.<\/p>\n
The WTO, however, urged Indonesia to press on with trade
\nreforms to help boost economic growth, reduce poverty and attract
\nforeign investment.<\/p>\n
The WTO secretariat, on its website, says that trade
\nliberalization and other structural reforms undertaken by
\nIndonesia since the severe financial crisis of 1997 have
\nsuccessfully stabilized the economy and fostered growth.<\/p>\n
\"But the economy remains fragile and the recent global
\ndownturn has heavily reduced foreign investment, on which the
\neconomy critically depends,\" it said in a report released on
\nTuesday.<\/p>\n
The report said further trade and other structural reforms,
\nincluding strengthened governance and institutions, were needed
\n\"to alleviate poverty, to provide the basis for the sustained
\ngrowth of the economy and to help boost investor confidence,
\nsomething which the country urgently needs.\"<\/p>\n
The WTO assessed Indonesia's economic and trade policies over
\nthe past four years in Geneva on Monday to ensure whether or not
\nthe policies violated the WTO ruling.<\/p>\n
During the two-day meeting, the WTO praised Indonesia's move
\nto bring import tariffs down to an average of 7.2 percent in
\n2002.<\/p>\n
At home, however, criticism on the government's move to
\ndrastically reduce import tariffs, mainly on the four key
\nagriculture products of rice, sugar, soybean and corn, have been
\non the rise.<\/p>\n
The government currently imposes import tariffs of Rp 430 per
\nkilogram on rice, Rp 570 and Rp 700 on sugar and zero percent on
\nboth soybean and corn.<\/p>\n
Experts have said the government should impose higher import
\ntariffs on these commodities to protect local farmers against
\ncheaper imported products.<\/p>\n
The report also discloses that WTO members raised questions
\nover Indonesia's move to impose non-tariff barriers on several
\ncommodities, such as textiles and steel.<\/p>\n
Some WTO members have also sought clarification on, among
\nother things, the 'check' prices for customs valuation purposes,
\nthe use of import restrictive licensing, anti-dumping measures,
\nexport restriction, labeling requirements and participation in
\nregional and bilateral trade liberalization agreements.<\/p>\n
The WTO also urges greater transparency and public scrutiny of
\nIndonesia's trade policies especially in sensitive sectors,
\n\"where trade policy seems to be set on an ad hoc basis.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wto-acknowledges-indonesia-for-trade-liberalization-moves-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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