RI to seek WTO help over disputes

Mustaqim Adamrah ,  THE JAKARTA POST ,  JAKARTA   |  Thu, 11/26/2009 1:28 PM  |  Headlines

Indonesia will request the World Trade Organization (WTO) to provide assistance to developing countries to help improve their capacity to deal with trade disputes that arise with developed nations.

Indonesian Trade Minister Mari Elka Pangestu said Wednesday the number of anti-dumping and safeguard measures investigated this year had doubled from last year.

Many countries have been taking such measures to protect their domestic markets from the influx of imported goods since the global economic crisis hit late last year.

"There has been an increasing tendency *of anti-dumping and safeguard measures*. It is the right of all countries if they have their reasons," Mari told the press in a conference about the 7th WTO ministerial meeting that will be held in Geneva, Switzerland, from Nov. 30 to Dec. 2.

"But there's inequality and this will burden developing countries because their capacity to respond to dumping accusations by developed countries is not as strong as that of developed countries."

Mari said that if the accusations were unfounded, WTO members could appeal to the organization's dispute settlement body, "But *developing countries* will need the capacity to do that."

Therefore, she said, she would raise this issue at the upcoming WTO ministerial meeting in Geneva next week.

Dumping is carried out by manufacturers that export their pro-ducts to other countries at prices below those charged in their home country, or below production costs, while anti-dumping includes measures to counter dumping practices by imposing (additional) import tariffs.

Safeguarding is expected to help protect domestic manufacturers from serious fallout or collapse, direct or indirect, caused by an increase in imports of similar products manufactured by overseas competitors.

Indonesia is currently being accused of dumping float glasses by Vietnam, mosquito coils by the Philippines, toilet paper by Australia, and certain coated paper by the US.

Indonesia's motorcycle tires and tubes, as well as textiles, have been subjected to punitive tariffs imposed by Turkey since August.

At the same time, Indonesia is also reacting to the negative impact of nail imports from China and Malaysia on the domestic market, and to the suspected dumping of imported flour from Turkey.

Besides aid for developing countries facing trade disputes, Mari said Indonesia would also propose "aid for trade", where money from developed countries was pooled, at the WTO ministerial meeting,

"This *aid for trade' is not only lip service. It is a fund provided for developing countries to improve their capacity, to optimize their market access . The funding will not come from the WTO, but from donor countries," she said

Mari said this proposal would be separate from points negotiated in the Doha Round.

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