RI to file appeal on dumping allegations
The Jakarta Post, Jakarta
With some Indonesian products subject to new import duties due to dumping allegations, the Ministry of Trade plans to take 14 cases to the World Trade Organization's dispute settlement body for appeal.
"The body is an objective institution as one of the WTO's instruments. Any party -- even a developing country -- can file an appeal and win," said Minister of Trade Mari E. Pangestu recently.
Indonesia won its first case on WTO appeal over the import duty imposed by South Korea on its paper products late last month.
As of October, the trade ministry's directorate for trade safeguard had listed 14 Indonesian products currently facing dumping allegations from 10 countries.
The dumping allegations brought by Malaysia, South Africa and Turkey were on synthetic fiber product polyethylene terephthalate (PET), the United States on lined paper school supplies, Australia on low linear density polyethylene (LLDPE) and the European Union on synthetic staple fibers of polyester.
The dumping allegation brought by Malaysia have caused losses to Indonesian industry on PET products exported to the country. As of September, Malaysia imposed provisional safeguard measures ranging from 6.33 percent to 17.69 percent on synthetic fiber products from four Indonesian companies.
In the first nine months of 2004, Indonesia exported 975,310 kilograms of synthetic fiber products worth US$853,445. Meanwhile, in 2003, Indonesia exported 3.78 tons at the value of $2.9 billion.
Indonesia has yet to file the case with the WTO.
"Our next step is to file an appeal for a sunset review on Australia's LLDPE allegations," said the Ministry of Trade's director for trade safeguard Martua Sihombing, adding that the appeal would be filed by the year's end.
A sunset review is a periodic review carried out toward the end of the period for which the antidumping duty is valid.
According to the directorate, the Australian minister for justice and customs imposed antidumping duties on the product without detailing the percentage.
A country can impose antidumping duties on products sold at a lower price than the price on the home market. This is a sort of protective measure for its own industry.
Antidumping duties are imposed for five years and countries whose products are subject to them can request a review annually with the WTO's dispute settlement body.
"The private sector must work very closely with us in this matter to be able to pass the investigation phase and prove that we did not take such a (protective) policy, or it would hamper our exports' sustainability," said Martua.