WTO chief wants early resolution of RI auto dispute<\/p>\n
MANILA (AFP): World Trade Organization (WTO) director-general
\nRenato Ruggiero said yesterday he hoped for an early
\nresolution of an auto complaint lodged before its dispute
\nsettlement mechanism against Indonesia.<\/p>\n
Japan, the United States and Europe have held a series of
\nbilateral talks with Indonesia after lodging a complaint with the
\nWTO in October in an attempt to get Jakarta to remove measures in
\nits auto policy which the trio claim are discriminatory and
\nagainst multilateral trade rules.<\/p>\n
The case involves Jakarta's so-called national car policy
\nwhich extends special tax breaks to a car currently being
\nimported by Indonesia's PT Timor Putra Nasional from South Korea.<\/p>\n
\"We are for the moment in the phase of consultations\" with the
\nparties involved in the dispute, Ruggiero told a news conference
\nin Manila after he spoke at a Pacific basin business meeting
\nhere.<\/p>\n
\"We have to see how those consultations will go.\"<\/p>\n
\"One of the best records of the dispute settlement procedure
\nis that we have solved 25 percent of the disputes before they
\nreally go into the legal side of the procedure,\" Ruggiero said.<\/p>\n
\"So we hope this will also be the case for Indonesia.\"
\nIndonesian President Soeharto ruled in February 1996 that
\nproducers of the \"national car\" would be granted exemptions on
\nimport duties and luxury taxes, which add about 60 percent to the
\nprice of other cars in Indonesia.<\/p>\n
PT Timor Putra Nasional, controlled by Soeharto's son Hutomo
\n\"Tommy\" Mandala Putra, was chosen as the national car supplier
\nand is required to clear an eventual goal of a local content
\nexceeding 60 percent by 1999.<\/p>\n
The cars are being imported from South Korea pending
\ncompletion of PT Timor's own factory.<\/p>\n
Liberalization<\/p>\n
Ruggiero also sought Asian backing for a proposed agreement to
\nliberalize trade in financial services by the end of the year.<\/p>\n
The trade body has set a July 14 target for receiving
\nliberalization offers from member countries and the end of the
\nyear for concluding the negotiations.<\/p>\n
\"It's very important that the countries of this region will
\nreally see these negotiations as a key one for them,\" the Italian
\nWTO chief told the news conference.<\/p>\n
\"The participation of countries of East Asia and Southeast
\nAsia is important because of (its) relevance, because of the
\nadvantages that the multilateral system has brought to this
\nregion, and the importance of the financial institutions in this
\npart of the world.\"<\/p>\n
Ruggiero, speaking earlier Tuesday before Pacific basin
\nbusiness leaders at a regional conference here, said an agreement
\nin the financial services sector would have the same impact on
\nAsia as those triggered by WTO accords on the liberalization of
\ntelecommunications and information technology.<\/p>\n
\"In this sector, as in telecommunications and information
\ntechnologies, we are building the foundations of the 21st century
\neconomy,\" he said.<\/p>\n
\"Financial services cannot be viewed through the outdated
\nparadigm of importers and exporters, North and South,\" he said.<\/p>\n
\"Developing countries have the greatest need for a competitive
\nfinancial infrastructure, both to encourage much-needed
\ninvestment and to compete in the globalized financial markets of
\nthe future,\" he said.<\/p>\n
\"At the same time, developed economies have a clear interest
\nin an agreement which will open the fastest growing markets to
\none of their fastest growing industries.\"<\/p>\n
Ruggiero said the WTO was organizing several regional seminars
\nto provide technical assistance for 89 countries \"in order to
\nclarify the issues involved with regard to financial services,
\nand to prepare these countries for the negotiations in this
\narea.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wto-chief-wants-early-resolution-of-ri-auto-dispute-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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