RI wants to continue bilateral car row talks

RI wants to continue bilateral car row talks

JAKARTA (JP): Indonesia will continue bilateral talks on its
national car policy with Japan, the European Union and the United
States, if the World Trade Organization's (WTO) dispute panel can
be stopped if the talks end in an agreement.

Minister of Industry and Trade Tunky Ariwibowo said this
yesterday in response to questions about the national car policy
dispute's progress.

"I am still waiting for (WTO's base) Geneva to clarify at
which point the dispute panel cannot be stopped, because if --
through the parallel bilaterals -- we reach an agreement, this
should allow the complaining party to cancel its complaints and
the panel process to be stopped," he said.

Tunky said that if the panel process could not be stopped,
there was no use continuing the bilateral talks.

The WTO agreed last week to create a panel to look into
Japan's and the EU's complaints that Indonesia's national car
policy violated open trading rules.

The U.S. is also to request a similar panel at the Dispute
Settlement Body's (DSB) next monthly meeting on June 25, although
this may be blocked by Indonesia as it will be the first time
Washington has formally asked for a panel. The next time, the
request will be automatically approved by the DSB.

Japan, the EU and the U.S. argue that the policy, aimed at
boosting Indonesia's domestic car industry, but so far only
aiding a firm headed by President Soeharto's youngest son, runs
against several WTO accords.

Indonesia has denied that the import and luxury tax
concessions enjoyed by PT Timor Putra Nasional, which currently
produces its Timor sedan at a South Korean Kia Motors Corp plant
in South Korea, breaches WTO rules.

Indonesia has said that the decision to create a panel would
not stop it continuing bilateral talks with the three
complainants.

Tunky said yesterday that this was the first time the WTO has
had to deal with a country facing complaints from more than one
party.

"That's why I don't know how many panels we will have. Our
ambassador at the WTO is discussing this with WTO's secretary-
general in Geneva and I haven't received a report yet," he said.

Tunky said he and his staff had to work "very quickly" because
the next DSB meeting was only days away.

He said that so far none of the three panel members had been
chosen. "But selection must be made within 20 days of the panel's
creation," he said.

One panel member would be chosen by Indonesia, one by the
complainant, and these two panel members would chose the third,
he said. All three must come from neutral countries.

He said Indonesia would not change its stance, during the
bilateral talks, on the tariff and tax-reduction schemes it had
earlier proposed to the complainants.

"What we have is a gap between what we are proposing and what
they want. The bilateral talks in the next few days will give us
a chance to approach each others' position," he said. (pwn)