WTO to create panel on national car policy<\/p>\n
GENEVA (Reuter): The World Trade Organisation (WTO) agreed
\nyesterday to create a panel to look into complaints from Japan
\nand the European Union that Indonesia's national car policy
\nviolates open trading rules.<\/p>\n
Approval of a panel at a meeting of the WTO's Dispute
\nSettlement Body (DSB) was automatic as earlier requests by both
\nJapan and the EU were blocked by Indonesia -- an action only
\npermitted once under DSB procedures.<\/p>\n
The two trade powers argue that the policy, aimed at giving a
\nboost to Indonesia's domestic car industry but so far only aiding
\nPT Timor Putra Nasional, a firm headed by a son of President
\nSoeharto, runs against several WTO accords.<\/p>\n
But the case has much wider implications for developing
\ncountries in the 131-member WTO seeking to develop their own
\nnational industrial base to enable it to compete with goods from
\nthe richer economies.<\/p>\n
Indonesia has persistently denied that import and luxury tax
\nconcessions enjoyed by Timor Putra, which currently produces its
\n\"Timor\" sedan car in South Korea at a plant of the South Korean
\nKia Motors Corp break WTO rules.<\/p>\n
Earlier last month, the Indonesian government made it
\ncompulsory for government agencies and state companies to include
\nTimor car in their sedan procurement programs in a bid to bolster
\nthe car sales.<\/p>\n
The EU, Japan and the United States -- which has also
\ncomplained to the WTO, but has not yet asked for a panel of its
\nown -- say the policy unfairly discriminates against their own
\ncars exported to Indonesia.<\/p>\n
On Thursday Japan told the DSB -- on which all members of the
\nWTO can sit -- that consultations with Indonesia over the past
\nfew weeks in a bid to reach a settlement had failed to produce
\nany sign of movement from Jakarta.<\/p>\n
But Tokyo would continue talks with Indonesia, in parallel
\nwith the panel process, to find a satisfactory conclusion \"and
\nhoped that objective was understood and shared\" by Jakarta, a
\nJapanese official was quoted by diplomats as saying.<\/p>\n
An EU official told the DSB that Brussels had also failed to
\nconvince Indonesia to adjust the policy and bring it into line
\nwith WTO rules on goods trade, subsidies and trade-related
\ninvestment measures (TRIMs).<\/p>\n
Trade sources said Indonesian diplomats present made no
\ncomment, and the United States did not immediately indicate
\nwhether it wanted its complaint to be studied by the panel --
\nwhich will look at the Japanese and EU charges.<\/p>\n
But under WTO rules Washington can ask to join in within the
\nnext 10 days.<\/p>\n
The three-member panel, which has to be created within 20
\ndays, will have from six to nine months to come up with its
\nfinding.<\/p>\n
According to WTO rules, the names of the persons to be
\nappointed to the panel are proposed by the WTO secretariat from
\nthe list of governmental and non-governmental experts it
\nmaintains.<\/p>\n
The persons in the list are well-qualified senior officials of
\nmember countries and members of their delegations to WTO.<\/p>\n
An appeal can be lodged gains the panel's decision , and an
\nappeals board would then have 60 days to come to a decision.<\/p>\n
But if the final ruling goes against Indonesia, it would have
\nto bring its policy in line with the panel recommendations or
\nagree to pay compensation for the value of trade lost to the
\ncomplainants.<\/p>\n
If it refused to do either, the WTO could authorize Japan and
\nthe EU to take trade measures against Indonesia that would
\ncompensate for the losses they have incurred.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wto-to-create-panel-on-national-car-policy-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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