WTO set to create panel in car row<\/p>\n
GENEVA (Reuter): The World Trade Organization (WTO) appears
\nset to create a dispute panel sought by the European Union and
\nJapan on Indonesia's controversial \"national car\" policy,
\ndiplomats said Friday.<\/p>\n
Both trade powers have put their request on the agenda of a
\nmeeting of the WTO's Dispute Settlement Body (DSB) next Thursday
\nfor the second time, and under the trade body's rules a panel
\nwill be established automatically.<\/p>\n
Indonesia blocked earlier panel bids by the two, who are
\nstrongly supported by the United States, but the rules do not
\nallow it to repeat this action.<\/p>\n
The EU and Japan argue WTO open trade regulations are violated
\nby the policy, which gives special tax exemptions from tariffs
\nand taxes to national carmakers.<\/p>\n
The concessions have so far benefited only a joint venture
\nbetween a company headed by a son of Indonesia's President
\nSoeharto and South Korea's Kia Motor Corp, which produces a sedan
\nknown as the Timor at a Kia plant.<\/p>\n
The two powers, as well as the United States which is also
\nexpected to seek a panel in the coming weeks, argue the policy
\ndiscriminates against their automobile exports to Indonesia by
\nmaking the Timor cheaper.<\/p>\n
Jakarta has rejected the complaint, insisting that it is not
\nbreaking WTO rules.<\/p>\n
A panel -- made up of three neutral experts -- would have six
\nmonths to come up with its findings. But these could be appealed
\nby either side and it could be up to 18 months before a final WTO
\nruling is approved by the presently 131 members.<\/p>\n
If the case should go against Indonesia, it could not block a
\nfinal ruling -- as it would have been able to do in the WTO's
\npredecessor body, the General Agreement on Tariffs and Trade --
\nand would be asked to bring the policy in line with the rules.<\/p>\n
If it declined, the complainant powers would be authorized to
\ntake trade measures against Indonesian exports to the value of
\nthe trade they say they have lost.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wto-set-to-create-panel-in-car-row-1447893297",
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"sponsor": "Okusi Associates",
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