RI to uses bilateral approach to settle trade disputes

RI to uses bilateral approach to settle trade disputes

JAKARTA (JP): Indonesia will take a bilateral approach in
dealing with non-tariff barriers imposed by other countries
against Indonesian exports, State Minister of Food Affairs
Ibrahim Hasan said yesterday.

Ibrahim said a bilateral approach based on a mutual
recognition agreement -- under which countries involved in
bilateral trade can exchange information about their import-
export regulations -- would be more effective than other
approaches.

"We have used mutual recognition agreements in dealing with
Australia and the United States," he said at a hearing of House
Commission III for agriculture, forestry, transmigration and food
affairs.

"Our developed partners will provide technical aid to help
Indonesian exporters without charging for it because it is a
government to government cooperation," he said.

He said Indonesia's food and live animal exports were
increasing.

Exports were US$3.77 billion last year, up from $3.58 billion
in 1995.

But he said the exporting business was still hampered by non-
tariff barriers such as the automatic quarantining of goods
imposed by several countries, including Australia.

He said Australia rejected 0.85 percent of Indonesia's exports
of processed and unprocessed food last year.

Of the 0.85 percent, he said, "at least 66 percent of our food
exports have been rejected by Australia due to its health
requirements. Sixteen percent was rejected due to high pesticide
content, 12 percent due to preservative content and 6 percent
because it exceeded the allowed microbiological levels".

He said the fact that goods were rejected showed that
Indonesian exporters did not understand the export regulations in
destination countries.

He added that although international standard regulations on
food processing have been set and approved by importer countries,
some countries have added special regulations.

"Our food exporters have to understand both the international
standards and special regulations imposed by destination
countries," he said. (gis)