JAKARTA (TheInsiderStories)–The United States (U.S) has urged World Trade Organization (WTO) to impose an annual sanction on Indonesia over trade disputes that cost US industries of US$350 billion in 2017.
The U.S considers Indonesia is not seriously implementing policy changes after losing trade dispute against the U.S and New Zeland. The two countries win trade dispute over Indonesia’s import restriction on food, plants and animal products, including apples, grapes, potatoes, onions, flowers, juice, dried fruit, cattle, chicken, and beef.
Indonesia also lost an appeal in 2017. The insistence emerged after the WTO published documents submitted by the United States on Monday (06/08) local time.
“Based on a preliminary analysis of available data for certain products, this level is provisionally estimated up to approximately $350 million for 2017. The United States will update this figure annually, as Indonesia’s economy continues to expand,” it said as quoted by Reuters.
The trade dispute started in 2016 when Indonesia issued 18 regulation in attempts to protect local farmers and cattlemen but considered as non-tariff barriers for the U.S and New Zealand’s agricultural and livestock products.
The two countries judged those regulations as not in accordance with the General Agreement on Tariffs and Trade Agreement between WTO members, then report it to WTO, which Indonesia suffered lost on December 23, 2016.
Indonesia filed an appeal in 2017 but lost again. Therefore, the country should adjust 18 import regulations for horticulture and animals imports.
There is no sign New Zealand will propose a similar sanction as Indonesia’s restricted import cost the country’s beef sector up to NZ$1 billion (US$673 million).
Meanwhile, Trade Ministry’s Director General for Foreign Trade Oke Nurwan said Indonesia has changed its Minister Trade Regulation and Minister of Agriculture Regulation in attempts to comply with trade dispute decision on July 22, 2018.
“Well, then whether they are satisfied with the changes we have made, of course, that must be conveyed by the WTO,” he said on Tuesday (7/8), as quoted by Tempo.
According to Nurwan, Indonesia had submitted all the changes to the WTO and expects the institution to deliver an assessment of the changes whether its comply with WTO regulation.
Prior to the trade dispute in 2016, the US and New Zealand filed a complaint in 2013 over non-tariff barriers implemented by Indonesia since 2011. The two countries have complained over the import quota restriction on beef, chicken, certain vegetables, and fruits. Indonesia removed its import quota policy since the second semester of 2016.