RI still looking to settle car-policy row bilaterally
RI still looking to settle car-policy row bilaterally
JAKARTA (JP): Indonesia has about eight months to continue
bilateral talks with the complainants of its national car policy
before the World Trade Organization's (WTO) dispute settlement
panel process can no longer be stopped, Minister of Industry and
Trade Tunky Ariwibowo said yesterday.
Tunky said the WTO panel on the national car policy could not
be stopped once it came close to reaching a verdict.
"This means we still have eight to nine months to continue
bilateral talks and we hope the talks can stop the panel process
altogether," Tunky said.
He was speaking after a visit by Vice President Try Sutrisno
to the ministry. During the five-hour visit, Try held discussions
with officials about the progress of the ministry's programs.
The discussion was attended by some 300 middle to high-ranking
officials, including heads of the ministry's provincial offices
and directors of state enterprises overseen by the ministry.
Tunky said that although Indonesia still had time to hold
bilateral talks with Japan, the European Union and the United
States -- all of whom had requested panels from the WTO's Dispute
Settlement Body (DSB) -- "difficulties" were emerging in the
talks.
He refused to comment further on the bilateral talks.
The U.S on June 25 joined the EU and Japan in pressuring
Indonesia over its car policy by asking the WTO to set up a panel
to look into the dispute.
Indonesia blocked the first formal request. Under WTO rules, a
country has the right to block a request to form a panel the
first time it is sought.
Trade diplomats expect the U.S to take its complaint about
Jakarta to the next WTO body meeting on July 30 when the request
will be approved automatically.
The DSB has already set up a panel to assess complaints from
the EU and Japan on the car policy. It will have from six months
to nine months to come up with a ruling.
Japan, the U.S and the EU argue that the tax and import duty
breaks for Indonesia's national car firm headed by Hutomo Mandala
Putra, the youngest son of President Soeharto, discriminate
against their exports and violate a range of WTO accords.
Indonesia has denied the import and tax concessions enjoyed by
PT Timor Putra Nasional -- which produces its "Timor" sedan car
in South Korea at a Kia Motors Corp plant -- break WTO rules.
Tunky said the three complainants had submitted the names of
their candidates for the three-member panel. Only one, not three
separate panels, would be created to settle the dispute.
"If, by today (yesterday), the four countries in dispute fail
to approve the candidates, the WTO's director general may select
the panel members himself," Tunky said.
He said this would disadvantage Indonesia because Indonesia
would have to accept the panel created by the WTO.
Earlier reports said that if the panel was set up and its
findings went against Indonesia, an appeal could be lodged and an
appeals board would have 60 days to decide.
If the final ruling went against Indonesia, then it would have
to bring its policy in line with the panel's recommendations or
agree to pay compensation for the value of trade lost to the
complainants.
If it refuses to do either, the WTO could authorize the
complainant states to take trade measures against Jakarta that
would compensate for the losses they suffered as a result of the
Indonesian national car policy. (pwn)