U.S. offers import duty cuts for Aceh goods

U.S. offers import duty cuts for Aceh goods

In a gesture to help Aceh tsunami victims, the United States has
offered a scheme to cut import duties on Acehnese products
entering U.S. market, a senior official at the Ministry of Trade
said.

"We had informal talks with the U.S. and they are willing to
extend preferential cuts in duty, but only for Acehnese
commodities and goods," the ministry's director general for
international cooperation Pos M. Hutabarat said over the weekend.

However, Aceh had limited manufacturing industry, and exported
its products and natural commodities through the neighboring
province of North Sumatra, he said.

"We will formally propose that the scheme cover all goods using
materials from Aceh. We will have to identify which goods are
eligible to enjoy the benefits of the scheme."

The scheme is formally known as the Generalized System of
Preference (GSP) program, under which developed countries grant
preferential duty cuts for selected products from developing
countries.

Aside from the U.S., the European Union also offers a similar
scheme. At the moment, Minister of Trade Mari E. Pangestu is on a
trip to Europe to, among other things, ask for GSP treatment for
Indonesian tuna, shrimp, textiles and clothing.

Following the tsunami disaster that claimed up to 230,000
lives along Asian coasts on Dec. 26, the world poured aid into
devastated countries. The more developed countries have also
offered some trade relief measures. -- JP