Japan's complaint to WTO

Japan has asked the World Trade Organization (WTO) to establish a panel to decide on its complaint over Indonesia's national car policy. Japanese minister of international trade and industry said his government had submitted a formal request to that effect on Thursday, April 17th.

Indonesia's membership in the WTO and the consequences it brings -- including the possibility of being condemned by the panel and penalized -- provides a tangible illustration of the possible effects which the era of globalization may have. The question is: are we ready?

The dispute over our national car policy demonstrates a particular dilemma which we are facing in this context. Our automotive industry does need some fundamental reforms to enable it to face the dawning of the free trade era. Our automotive industry has so far not been able to produce a "national car", which according to APEC criteria must have a local content of at least 40 percent.

But whatever the WTO decision may be, our national car policy cannot be halted. Obviously, this does not mean that we must stubbornly stick to our present policy even if it is found to be in violation of the rules, but rather we must modify our policy so it will be in compliance with the WTO rulings.

-- Media Indonesia, Jakarta