2017-07-17 Advanced Training Workshop on WTO Trade Remedies Trade Defense in Indonesia: Challenges and Opportunities Director of Trade Defense, DGFT, Ministry of Trade Bogor, Indonesia July 17-19, 2017 Trade remedy is a trade policy tool Allow governments to take exceptional measures to the WTO basic principles by exerting remedial actions against imports which are causing material injury to the domestic industry. There are three trade remedies under the WTO. Anti-subsidy or Anti-dumping Safeguards countervailing 1
2017-07-17 Most-Favoured-Nation (MFN) principle Prohibits discrimination National Treatment between imports irrespective principle of their origin or destination Prohibits discrimination between imported and locally produced products Binding Principle Advocates adherence to the Quantitative Restriction bound rates in Member’s Principle Schedules of Tariff Concessions Prohibits the introduction or maintenance of quantitative restrictions LEGAL BASIS OF TRADE REMEDIES OF INDONESIA Law No. 7/2014 Concerning Trade Chapter IX Article 67-72 Mandates the Function of Trade Defense to the Ministry of Trade Directorate of Trade Defense & INDONESIAN ANTI-DUMPING INDONESIAN SAFEGUARDS Trade Advocacy Bureau COMMITTEE COMMITTEE Securing Foreign Trade Access Securing Domestic Market Securing Domestic Market •Trade remedies defense •Investigation on anti-dumping •Investigation and and anti-subsidy recommendations on •Defense on Indonesian export safeguards duties(Safeguard products •Recommendations and Measures) reviews on anti-dumping and •Defense on unfair/obstructed anti-subsidy duties foreign trade regulations or practices •Defense on domestic trade regulations and practices. 2
2017-07-17 DPP on Trade Remedy Cases 1995 - 2017 STATUS TOTAL DUMPING SUBSIDY SAFEGUARD Applied 102 6 22 130 Terminated 93 12 33 138 On Process 19 4 5 28 Total 214 22 60 296 D 3
2017-07-17 DPP on Trade Remedy Cases Countries Invoking Trade Remedy Instruments to Indonesia European India, 45 Others, 73 Union, 34 Pakistan, 11 United Brazil, 11 A A States, 32 Phillipines; 12 B Australia, 25 South Malaysia, 18 Africa; 13 Turkey, 21 C D DPP on Trade Remedy Cases Products Subject to Foreign Trade Remedy Measures Others 26 Lain-Lain Fishery 2 Perikanan Footwear 7 Alas Kaki Woods 8 Kayu Palm oil 9 Sawit Plantation 10 Perkebunan Glass 30 Kaca A A Textile 40 TPT Paper 49 Kertas B Chemical 57 Kimia C Metal 58 Logam D 0 10 20 30 40 50 60 4
2017-07-17 TRADE REMEDIES on FOCUS: UNITED STATES 5
2017-07-17 and subsidy and subsidy and subsidy and subsidy and subsidy 6
2017-07-17 MARCH 31, 2017 7
2017-07-17 NEW APPROACH OF TRADE REMEDIES FROM UNITED STATES UNITED STATES uses safeguards approach which is rarely used in the past In June only, there were 2 (two) safeguards allegations initiated by the US Safeguards on Crystalline Silicon Photovoltaic Cells (solar panel) • June 1 st Safeguards on large residential washers (washing machine) • June 12 th INDONESIA-US: FRIEND OR FOE? Although Indonesia is on the radar of US trade hit list, the country still have opportunity to ramp up its export to the US….. US is still focusing on countries Indonesia still have more with largest trade surplus such opportunities in the market, as China with USD 347 billion particularly in fisheries export surplus followed by Japan, as 80% of US fishery domestic Germany, Mexico, Ireland and consumption is coming from Vietnam import Indonesia and US have managed to talk as a friend in the bilateral G2G forum, namely Indonesia-US Trade and Investment Framework Arrangement-Trade and Investment Council (TIFA-TIC) Forum held in June 2017 8
2017-07-17 DS 406 9
2017-07-17 10
2017-07-17 • Trade diplomacy: set up a strategic Industries Proactive collaboration and pressure group Coordinating with the Government • Trade Advocacy: Defensive Defending Collaborating with Indonesian export other exporters to gain market access Making good Offensive • Trade Litigation: relationship with other DSB - WTO exporters/importers ROLE OF Comply with domestic and international rules THE STAKEHOLDERS 11
2017-07-17 Challenges Be careful with the increasing trend of trade remedies instrument usage. Indonesia’s export is at stake! Lack of competent trade lawyers and international trade specialists in Indonesia Lack of engagement and communication between government, academics and businesses in every stage of rule making Opportunities Take innovative approaches on products and seek for new export markets. Use preventive actions instead of defensive actions on trade remedies, e.g. engage more with importers, consumer organizations and/or user industry There is big opportunity to educational institution in Indonesia to create trade remedies’ experts Engage all stakeholders and create environment that is well-aware of trade remedies in order to make better future strategies 12
2017-07-17 Thank You Directorate of Trade Defense Directorate General of Foreign Trade Ministry of Trade of Indonesia 2 nd Building, 10 th Floor, MI Ridwan Rais St. No. 5, Central Jakarta 13
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