Indonesian commodities to get wider access

Indonesian commodities to get wider access

The Jakarta Post, Jakarta

Several groups of commodities from Indonesia will have a better
chance of entering into Russian market following the latter's
commitment to give wider access after Indonesia supported its bid
to join the World Trade Organization, an official said.

Herry Soetanto, director general for international trade
cooperation at the Ministry of Trade, said the commodities that
would benefit from wider access include crude palm oil, tobacco,
natural rubber, wood products, plaited materials and footwear,

Russia's commitment to liberalize the commodity sector was
given in exchange for Indonesia's support for Russia's bid to
become member of the multilateral trading organization.

Indonesia and Russia signed last week a WTO accession
protocol, which the latter needs in order to join the
multilateral organization.

The protocol, signed on the sidelines of an APEC trade
ministers' meeting in Jeju, South Korea, was a result of three
years of bilateral talks, which started in March 2003.

Through the protocol, Indonesia managed to ensure several
groups of key commodities will be liberalized after Russia's
accession, Herry said on Tuesday.

He continued that aside from ensuring the liberalization of
the key commodities, Indonesia also managed to win Initiating
Negotiation Rights (INR) on 23 specific commodities.

Such rights oblige Russia to consult with Indonesia, whenever
it wants to raise the tariff of the 23 commodities.

Herry did not specify the 23 commodities, but said they were
included in the six groups of key commodities.

While a number of former Soviet countries such as Armenia and
Kyrgyztan and Kazakhstan are already members of WTO, Russia
remains outside the multilateral trading system.

Russia currently has observer status at the WTO. Under WTO
rules, observers must start accession negotiations within five
years of becoming observers.

Negotiations especially with major trading partners could drag
on for years as what had happened with China, which became a full
member only in December 2001.