World Trade Organization (WTO) won Indonesia's lawsuit against Australia which adopted the anti-dumping entry policy for A4 copy paper products from Indonesia - Photo: Privacy.

JAKARTA (TheInsiderStories) – World Trade Organization (WTO) won Indonesia’s lawsuit against Australia which adopted the anti-dumping entry policy for A4 copy paper products from Indonesia. The victory is expected to ward off allegations of dumping that are often addressed to Southeast Asia’s biggest economy paper products.

“The victory over this dispute is very important, given its systemic impact on allegations of dumping from other countries. It is hoped that the WTO’s decisions and recommendations can minimize similar allegations in the future,” said trade minister Agus Suparmanto via press release on Thursday (12/05).

The minister said the decision was contained in the final report on WTO‘s dispute panel published on Wednesday. The decision ended the two countries’ disputes since September 1, 2017.

The WTO states Australia’s anti-dumping policy on A4 copy paper products from Indonesia violates Articles 2.2 and 2.2.1.1 of the WTO anti-dumping agreement.

Regarding article 2.2, Australia has constructed the normal value of Indonesian A4 copy paper producers without first testing whether domestic sales prices can be compared properly with export sales prices.

While relating to article 2.2.1.1, Australia refuses to use actual producer accounting data even though the data has fulfilled the generally accepted accounting principles (GAAP) and has reasonably reflected the costs associated with production.

“The first sentence of Article 2.2 is the WTO’s anti-dumping provisions because Australia has no basis for using pulp export prices from Brazil and South America to China and Korea. Second, it does not take profits from the reference price of the pulp used,” the minister explained.

Meanwhile, related to the Indonesian government’s claim against the finding of Particular Market Situation (PMS) in the country’s paper industry by the Australian authority, the Dispute Panel ruled that the findings could not be proven to violate Article 2.2 of the WTO Anti-Dumping Agreement.

Nonetheless, the Panel decides the Investigative Authority must still conduct a “proper comparison” between domestic prices and export prices in determining the normal value as required by Article 2.2 of the Anti-Dumping Agreement.

Based on the decision, the Panel recommends Australia take corrective action by making adjustments to the calculation of the amount of margin dumping that has been set on Indonesian A4 copy paper since 20 April 2017. In this final report, the minister revealed that the two countries also agreed not to appeal to the WTO’s Appellate Body.

Indonesia and Australia will then ensure the next stage, namely implementing the Panel’s recommendations by Australia within a period that will be mutually agreed upon, Suparmanto said.

Director-General of Foreign Trade Indrasari Wisnu Wardhana said the victory was expected to lift Indonesia’s paper export performance to Australia since the duties imposed. The value of paper exports decreased from US$ 34 million in 2016 to $12 million in 2018 due to the Australias’ tariffs of 12.6 percent to 38.6 percent, Wardhana noted.

In October, pulps are one of the ten largest groups of foreign exchange contributors. The export value reached $288.9 million. While, in January-October its value at $2.35 billion, equivalent to 1.83 percent of Indonesia’s total exports in the period, Wardhana ended.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com