Indonesia' import tariffs are safe from GATT Acts

Indonesia' import tariffs are safe from GATT Acts

BOGOR, West Java (JP): Indonesia's import tariffs average at
20 percent, far below the 40 percent required by the Final Acts
of the General Agreement on Tariffs and Trade (GATT) that will be
implemented early next year.

"It means we are safe as we still have room of 20 percent, in
case we have to take safeguard measures against imports which may
harm our local industry," Rijanto B. Josokoemoro, chief of
Foreign Trade Research and Development of the Ministry of Trade,
told journalists during a three-day workshop, which ended on
Saturday.

The workshop discussed the results of the Uruguay Round of the
GATT negotiations, which were signed in Marrakesh last April.

He noted that Indonesia, anticipating barrier-free world
trade, has introduced deregulatory measures to liberalize imports
by lowering tariffs and reducing non-tariff barriers since 1986.
The last deregulation was introduced on June 27, when the
government cut import duties on 739 kinds of goods, removed non-
tariff barriers from 27 commodities and lifted surcharges from
108 other import items.

Iwan Purwana, director of exports of industrial and mining
products at the Ministry of Trade, said the number of goods
subject to import duties of over 40 percent totals only 505 --
mostly those sensitive to price fluctuations on the world market,
such as automotive vehicles, plastics and rubber -- out of more
than 8,000 kinds of goods.

Paian Nainggolan, head of the ministry's Trade Research and
Development Agency, said the government will continue to
liberalize its import sector in line with GATT principles.

The Marrakesh agreement stipulates that all signatories are
given four years to adjust their trade regulations to GATT
principles. If the time limit is not adequate for the GATT
signatories to make adjustments, an additional six years will be
given to developing countries and four years to developed
countries.

Right path

Sherry M. Stephenson, the ministry's consultant on trade
policy programs, praised Indonesia's current standing on trade,
saying that Indonesia in going in the right direction by
liberalizing its imports.

She compared Indonesia with Chile which she considered to be
one step ahead in liberalizing its trade. "Liberalization turns
out to be effective in making industry more efficient."

To better prepare for the full implementation of GATT's rules,
Stephenson suggested that Indonesia pay more attention to three
points: customs, quality standards and trade-related intellectual
property rights (TRIPs).

"Indonesia should move quickly to adjust itself with GATT's
rules, especially on TRIPs, as the time limit of four years is
not long," Stephenson said.

Nainggolan agreed with Stephenson's suggestion, saying that
Indonesia should try hard to comply with every condition set by
GATT.

"Although they (conditions) are actually created by developed
nations, we have to comply with them. Otherwise we will lose
forever as it's almost impossible to beat developed nations in
bilateral negotiations. But in GATT, we have chances of beating
them in a multilateral manner," Nainggolan said. (rid)