Indonesia prepares response after US proposes additional 10 percent tariff
Regarding the ongoing discussion process, the Indonesian Government will continue to communicate constructively with the United States Government.
Jakarta (ANTARA) - The Indonesian government is monitoring and preparing an official response to the results of the investigation by the United States Trade Representative (USTR) which highlights the policies of several countries regarding the prevention of imports of goods produced using forced labour.
“The Indonesian government is monitoring the USTR’s announcement regarding the results of the preliminary investigation based on Section 301 of the Trade Act of 1974 concerning the policies and practices of several countries related to efforts to prevent the import of goods produced using forced labour,” said Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, in Jakarta, Thursday.
As is known, in a document entitled Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor, Indonesia is included in the group of six countries that are considered to have not effectively enforced the prohibition in question. In addition to Indonesia, the other five countries include Canada, Ecuador, the European Union, Mexico, and Pakistan.
The USTR assessed that these practices limit US trade and therefore proposed the imposition of additional tariffs on the countries concerned.
For Indonesia, the USTR proposed an additional tariff of 10 percent. Meanwhile, 54 other countries, which are considered to have no laws prohibiting the import of goods produced with forced labour, face additional tariffs of 12.5 percent.
In response to this, Haryo affirmed that Indonesia remains committed to respecting human rights, protecting workers, and implementing labour principles in accordance with international standards.
The government will follow up on the process that has been prepared by the USTR, including submitting written comments and participating in public hearings.
“Regarding the ongoing discussion process, the Indonesian Government will continue to communicate constructively with the United States Government,” he said.
In addition, the Indonesian government will continue to strengthen the implementation of import regulations and ensure that goods entering Indonesia do not come from business activities that use forced labour practices.
“In line with this, the Government will also continue to strengthen the implementation of import regulations and ensure that imported goods are not produced from business activities that use forced labour practices,” he added.
The tariff proposal emerged after the USTR completed an investigation of 60 of the US’s main trading partner economies based on Section 301 of the Trade Act of 1974. This step is also one of the steps taken by the Donald Trump administration to maintain tariff policies after some previous tariffs faced legal obstacles in the US.