Japan to ask for WTO help on RI car policy

Japan to ask for WTO help on RI car policy

GENEVA (AFP): Japan will ask the World Trade Organization this month to form a panel to examine a dispute over Indonesia's controversial national car policy, a diplomatic source said here Thursday.

"The request will be put forward on April 30" only by Japan during the monthly meeting of the WTO's Dispute Settlement Body, which handles trade spats, he said.

The United States and Europe have also lodged a complaint with the world trade body over what they allege is Indonesia's discriminatory policy on automobiles.

Indonesia's "national" car is currently being imported from South Korea by a joint venture between Kia Motors and PT Timor Putra Nasional.

Timor Putra, is exempted from paying import duties and luxury taxes, which add about 60 percent to the price of other cars in Indonesia.

Jakarta, which has had months of consultations with the parties, had been hoping to avert a panel at the WTO.