Indonesia to talk about car policy with the U.S.
Indonesia to talk about car policy with the U.S.
JAKARTA (JP): Indonesia and the United States are to discuss
the former's national car policy during a ministerial meeting of
the Asia Pacific Economic Cooperation (APEC) in Christchurch, New
Zealand, later this week, a senior U.S. diplomat said yesterday.
"We'll talk with our Indonesian colleagues about how to move
the country's national car policy in a direction which is
consistent with the principles of the WTO (World Trade
Organization)," Dorothy Dwoskin, U.S. assistant trade
representative for the WTO, said in a Worldnet Dialog broadcast
from Washington.
During the dialog, whose participants included panelists in
Jakarta, Canberra and Wellington, Dwoskin said that the U.S.
Secretary of Trade Mickey Kantor made it clear here last month
that the U.S. wants to work with Indonesia to assure that
policies adopted by the country will be compatible with those of
the WTO.
"We have consultations scheduled. Ambassador Barshefsky will
be meeting with the Indonesian trade minister in Christchurch.
Hopefully, we'll have further discussions," she said.
She was referring to Acting U.S. Trade Representative Charlene
Barshefsky and Indonesian Minister of Industry and Trade Tunky
Ariwibowo, who are scheduled to attend the APEC ministerial
meeting in Christchurch, New Zealand, on July 15 to 16.
Tunky announced in February that the Indonesian government
granted pioneer status to PT Timor Putra Nasional, a company
controlled by President Soeharto's youngest son Hutomo (Tommy)
Mandala Putra, to produce a national car, called "Timor", with
Kia Motors of South Korea. The company launched the car here on
Monday.
The United States, the European Union and Japan have all said
recently that the Indonesian car policy is not consistent with
its obligations to fulfill WTO requirements.
Even Japan's auto industry, which currently dominates the car
market in Indonesia, has stated that it wants to take the car
issue to the WTO for what it called a smooth resolution under
fair trade rules.
Interpretation
Meanwhile, Director General of International Trade Anang Fuad
Rivai said in a hearing with legislators here yesterday that WTO
rules are subject to interpretation.
"Being subject to interpretation means there is a possibility
of the national car policy being debated," he said.
"They can have their interpretation and we can have ours. From
there, we can try to agree at a certain point," he told reporters
during a break at the hearing.
The national car policy was among the issues questioned by
legislators yesterday.
Anang also said that in the future, Indonesia may consider
counter-trading its products with imports of South Korea's
"Timor" sedans. He refused to identify the type of products that
may be sold to South Korea under a counter-trade arrangement for
the sedans.
He said the possibility of the counter trade is presently
being discussed between the companies involved and has not yet
been brought to the government.
Dwoskin said yesterday that during the Christchurch meeting,
APEC ministers will also talk about the action agenda of regional
economic cooperation. The action plan will include efforts to
remove impediments to regional cross-border investment.
"We also discuss what further steps can be taken between the
meeting in Christchurch and the meeting in Manila," he noted.
APEC is scheduled to start the implementation of its free
trade and investment plan on Jan. 1, 1997 after APEC leaders
endorse the tariff-reduction measures proposed by individual
member economies. The measures will be contained in a document
known as the Manila Action Plan for APEC '96, or MAPA.
APEC comprises Australia, Brunei, Canada, Chile, China, Hong
Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New
Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan,
Thailand and the United States. (13/pwn)