Govt considering taking Argentina to WTO panel

JAKARTA (JP): The government is considering taking Argentina to a World Trade Organization (WTO) panel for "unjustifiably" imposing high import tariffs on Indonesian footwear, a minister has said.

Minister of Industry and Trade Rahardi Ramelan said on Tuesday the government would take the Argentinean government to the WTO court if it did not remove the trade barriers.

"We have already had two unsuccessful bilateral meetings with the Argentinean ambassador (at the WTO headquarters) in Geneva," he told reporters at the ministry.

Rahardi said the move was being considered after the issue was raised by a group of American retailers and distributors of footwear at a meeting earlier in the day.

The president of the Footwear Distributors and Retailers of America, Peter T. Mangione, told reporters after the meeting with Rahardi that the Argentinean government imposed an import duty of more than 70 percent on Indonesian-made shoe products, compared to the normal 30 percent to 35 percent rate.

Indonesia is one of the main suppliers of athletic footwear to Argentina, an important market for soccer and other sports shoes.

Argentina is also a gateway to other South American markets, Mangione said.

"Indonesia is the only country involved in the shoe trade with Argentina that is a member of the WTO," he said, adding that neither China, Taiwan nor Vietnam -- all of which also supply shoes to Argentina -- were members of the WTO.

Mangione said the association suggested Rahardi request a panel at the WTO and take Argentina to the organization's court.

"This case must be adjudicated by the court at the WTO," he said.

The chairman of the Indonesian Footwear Association, Anton J. Supit, said his organization was prepared to assist the government financially in taking the case to the global trade dispute settlement body. (das)