Indonesian Political, Business & Finance News

RI meets nations on national car

| Source: JP

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)

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