RI meets nations on national car

SINGAPORE (JP): Minister of Industry and Trade Tunky Ariwibowo took time out from the World Trade Organization (WTO) ministerial conference yesterday to meet U.S., Japanese and European Union officials about their complaints over Indonesia's national car policy.

Tunky met European Commission vice president Leon Brittan for 10 minutes yesterday morning.

In the afternoon he spoke with Japan's Deputy International Trade and Industry minister, Hisashi Hosokawa, for about an hour.

On Wednesday Tunky met Acting U.S. Trade Representative Charlene Barshefsky for about half an hour.

He said besides bilateral matters he asked the three biggest trading powers about Indonesia's national car policy which was taken to the WTO's dispute settlement body in Geneva in October.

"Basically, we asked them to give us more time to work out our position on the next stage of negotiations," Tunky said after meeting Hosokawa, one was also of Japan's chief WTO negotiators.

Tunky said he had not yet got any reports from Indonesia's negotiating team in Geneva about the end of the second round of talks with the three complainants.

"All members of my team are here to assist me in various negotiations at the WTO ministerial conference. So, basically they have no time yet to complete a report on national car talks," the minister said.

Tunky said Japan, the U.S and the European Union understood Indonesia's difficulties in working out its position.

Indonesia's car policy, announced last February, gives tax and tariff breaks to PT Timor Putra Nasional -- which is controlled by President Soeharto's youngest son Hutomo Mandala Putra -- to produce Timor sedans as the national car in cooperation with South Korea's Kia Motors Corp.

Japan, the U.S. and the European Union are opposing the policy at the WTO arguing it contravenes free trade regulations, the most-favored nation principle, and several other WTO rules.

Negotiations are being held under the auspices of the WTO in Geneva but no agreement has been reached.

A Japanese official said Japan was waiting to hear Indonesia's latest position on its national car policy. If there was no change Japan would consider taking the case to the WTO panel, he said.

Tunky insisted yesterday Indonesia would make no compromises but said Indonesia was trying to settle the dispute through bilateral negotiations. (rid)