RI asks KL to annul trade barriers on steel pipes

RI asks KL to annul trade barriers on steel pipes

The Jakarta Post, Jakarta

The government said it had demanded that Malaysia revoke non-
tariff barriers against Indonesian steel pipes as compensation
for Malaysia delaying opening up its automotive market under the
ASEAN Free Trade Area (AFTA) agreement this year.

Director for Regional Cooperation at the Ministry of Industry
and Trade Budi Darmadi said on Thursday he had met Malaysian
officials last week, and that they had appeared responsive to
Indonesia's request.

"As a member of AFTA, Indonesia can ask for special
compensation from the Malaysian government because of this
delay," he told The Jakarta Post, referring to Kuala Lumpur's
decision to defer lowering tariffs protecting its automotive
market.

Malaysia was allowed to delay opening up its automotive market
until 2005. The delay is meant to protect its national car
project, Proton, from an influx of imported cars once trade
barriers fall.

Under the AFTA agreement, which came into effect this year,
import tariffs on almost all goods traded among ASEAN members
must be lowered to between five and zero percent.

Indonesia and Malaysia are among the six original members of
the Association of Southeast Asian Nations (ASEAN), to which AFTA
applies.

Malaysia, however, slapped non-import tariff barriers on
Indonesian steel pipe products, which Budi said was hurting steel
producers here.

The government earlier said that at least three of the ASEAN
member countries -- Thailand, Malaysia and the Philippines --
were actively imposing non-tariff barriers on a number of
Indonesian products.

Thailand had imposed dumping duties on Indonesian float glass
products; while the Philippines had imposed safeguard duties on
cement products.

Budi added that he had also met several Malaysian businessmen
to persuade them to buy Indonesian automotive spare parts.

"They have expressed interest, but want only Indonesian
products of consistent quality," he said.