Exporters lack knowledge of foreign trade regulations

JAKARTA (JP): Much of Indonesia's business community lacks knowledge of trade regulations in the countries where they do business, an official said yesterday.

The Director General of International Trade, Anang Fuad Rivai, said businesspeople should fully understand foreign trade regulations so they can reap maximum benefit from trading with those countries.

Anang was speaking at the opening of a seminar on market access to China, the United States and Australia.

Anang said Indonesian traders and entrepreneurs should increase contact and dialog with foreign trading partners and officials from importer countries who could tell them how to expand their export markets.

"Change and adjustment, based on entrepreneurship, are the source of economic growth. But the trading system itself, the rule of law embodied in the World Trade Organization, is suffering serious erosion," he said.

He said although open international trade was a key to sustained growth, world trade was not opening up.

"Instead it is being choked by a growing accumulation of restrictive measures. Demand for protection is heard of in every country and industry," he said.

This was why Indonesia's business community should understand the trade regulations applied throughout the world, he said.

According to a Ministry of Industry and Trade report, the U.S. applies regulations to protect its domestic industry from unfair international trade practices like dumping and subsidies and market injuries.

"These market injuries may be caused by soaring imports, market access and export promotion, protection of intellectual property rights and trade barrier eliminations," the ministry's report said.

The injuries are dealt with by applying relevant sections of the U.S. Trade Act.

Australia imposes several dumping claims on several export commodities from Indonesia.

"Currently there are 13 dumping claims and claims on subsidies to 11 export commodities," the report said.

Australia imposes strict quarantine regulations on vegetable and fruit imports and foodstuffs containing dairy products.

"In fact, imports of dairy products from Indonesia are completely restricted as Australia only allows imports from Canada, Denmark, Finland, Ireland, Japan, New Zealand, Norway, Sweden, the United Kingdom and the U.S.," the report said.

The report said Indonesia still had plenty of opportunities to diversify its exports to China.

Indonesia relies on plywood, vegetable oils and crude oil exports to China.

Central Bureau of Statistics figures show two-way trade between Indonesia and the U.S. grew 11.39 percent a year between 1991 and 1995.

In 1995, trade between the two reached US$11.07 billion, up 17.6 percent from the previous year's $9.42 billion.

During these years Indonesia has had a trade surplus with China and between January and September 1996 Indonesia had a $1.07 billion surplus, 20.4 percent lower than 1995's $1.35 billion surplus.

Two-way trade between Indonesia and Australia grew 8.31 percent a year between 1991 and 1995.

In 1995, trade between the two reached $2.93 billion, up from 1994's $2.25 billion.

Indonesia had a trade deficit with Australia during this period. In 1995, Indonesia's deficit reached $1.1 billion, up from 1994's $836.6 million.

Trade between Indonesia and China grew about 3 percent between 1991 and 1995.

In 1995, trade between the two reached $3.24 billion, up 20.3 percent from the previous year's $2.69 billion.

Indonesia had a trade surplus with China between 1991 and 1995, except in 1994 when Indonesia recorded $47.3 million deficit. (pwn)