U.S. will urge Indonesia to enter auto trade talks

U.S. will urge Indonesia to enter auto trade talks

WASHINGTON (Kyodo): The United States will soon urge Indonesia
to enter auto trade talks, focusing on American concerns over its
program to develop its own cars, a top U.S. industry official
said.

"Unfortunately, there is concern about the effect the national
car program will have on all foreign investors in Indonesia,"
Andrew Card, president of the American Automobile Manufacturers
Association, told the American Chamber of Commerce in Singapore
Tuesday.

"We are carefully reviewing this program with the U.S.
government, and understand that they plan to begin talks soon
with the government of Indonesia concerning auto trade," Card
said.

"The right way is to follow more open trade and investment
policies in line with the World Trade Organization (WTO). The
wrong way is to build walls to keep imports out of your market,"
Card said in his speech, whose excerpt was released here.

He said he would travel to Indonesia on Wednesday to discuss
the issue with industry and government officials there.

In February, Indonesian President Soeharto established a
program that offers preferential tax treatment to local
automakers under such terms as raising contents of local
components.

The Indonesian government has awarded the project to a company
which is owned by Soeharto's son and has a tie-up with a South
Korean automaker.

Japanese automakers, which hold some 90 percent of the
Indonesian market, have also criticized the program. The Japanese
government is considering filing a WTO dispute settlement case
against the local content plan, which it says is a violation of
global trade rules.