U.S. Seeks WTO Consultations With Indonesia Over Agriculture Restrictions
The U.S. is requesting consultations with Indonesia under the dispute settlement provisions of the World Trade Organization on trade-restrictive measures, said U.S. Trade Representative Ron Kirk. The U.S. said Indonesia created "a complex web of import licensing requirements" that unfairly restrict U.S. exports and appear to be designed to protect Indonesia's domestic agriculture industry.
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Indonesia's "opaque and complex import licensing system ... has become a serious impediment to U.S. agricultural exports entering Indonesia," Kirk said. In 2011, new Indonesian regulations established strict non-automatic import licensing requirements for horticultural products. They became even more onerous when they were revised in September 2012, the U.S. said in its request (here). Affected products include fruits, vegetables, flowers, dried fruits and vegetables and juices.
Indonesia has long maintained a similar non-automatic import licensing and quota regime for beef and other animal product imports. Indonesia recently announced drastic reductions in quotas for beef and other animal product imports, further restricting access to the Indonesian market, according to its fact sheet (here).
Consultations are the first step in the WTO dispute settlement process. Under WTO rules, if the matter is not resolved through consultations within 60 days, the U.S. may request the establishment of a WTO dispute settlement panel.