U.S. is expected to extend GSP to RI: Diplomat
U.S. is expected to extend GSP to RI: Diplomat
JAKARTA (JP): Washington is likely to continue granting trade
privileges under the Generalized System of Preferences (GSP) to
Indonesia after a six month long review ends this month, a former
Indonesian ambassador to the United States says.
Lt. Gen. (retired) A. Hasnan Habib said yesterday that he did
not expect Washington to deny Indonesia the GSP because doing so
would harm its expanding economic relations with Indonesia.
Hasnan told reporters, after attending a monthly luncheon
meeting organized by the Indonesian Executive Circle, that
Indonesia has done its part to improve labor conditions, the main
reason Washington was reviewing the GSP.
If the U.S. decides to remove Indonesia from the system, "it
means they do not acknowledge Indonesia's efforts and initiatives
in improving labor conditions so far," he said.
U.S. Ambassador to Indonesia Robert L. Barry was the guest
speaker at the luncheon.
Washington had been expected to announce the result of its six
month review on Aug. 15 but in a new twist, visiting assistant
Secretary of State Winston Lord said on Monday that there was no
specific deadline regarding the GSP review.
The U.S. government last year threatened to revoke the GSP,
alleging that Indonesia had failed to respect the basic rights of
workers, including their right to organize and the employment of
children.
It gave Indonesia until Feb. 15 to comply but extended the
review period for another six months to study the steps Indonesia
had taken to improve the labor conditions.
Under the GSP, a select number of Indonesian exports, worth
$650 million annually, are granted duty free privileges each
year.
Optimistic
Hasnan said he is optimistic because Indonesia is gaining
ground in preventing major trading partners' attempts to link
labor and human rights issues with trade and economic ties.
"Labor issues should be handled by the (United Nation's)
International Labor Organization, and should not be linked with
trade issues," he said.
Hasnan also believes Indonesia's chairmanship of the Asia-
Pacific Economic Cooperation (APEC) forum is a factor which
should encourage the United States to reconsider removing
Indonesia from the GSP system.
A recent U.S. government publication also listed Indonesia as
one of the countries in the Asia-Pacific region that offers major
trade and business opportunities to American companies.
Indonesia has taken a number of steps in the past year to
improve labor conditions but the government insists that these
measures had been in the pipeline and had nothing to do with
Washington's threat to revoke the GSP.
The measures include boosting the officially set minimum wage,
revamping the All Indonesian Workers Union back to its original
format as a federation of workers unions, and punishing employers
who fail to respect the workers' rights. (pwn)