The government would do its best to fight US discrimination of Indonesian-produced clove cigarettes that resulted from a new law aimed at reducing the number of young smokers in the US, said Gusmardi Bustami, the Trade Ministry’s director-general of international trade cooperation.

After a formal consultation between the countries in May failed to produce results, Indonesia formally submitted a complaint during a court session of the WTO’s (World Trade Organization) Dispute Settlement Body (DBS) at the organization’s headquarters in Geneva on June 22, Gusmardi said.

The Indonesian government had no other choice but to go to the international trade organization to settle a dispute about the country’s clove cigarette exports to the US because bilateral negotiations failed, he added.

Indonesia asked the WTO to create a panel of experts to rule on the issue — even though the countries have 60 days after a request is filed to resolve differences through consultations, Gusmardi said.

“We have conveyed our objections to the US tobacco restrictions at many bilateral forums for more than four years, and none of our attempts were successful,” he said.

In a DBS court session on Thursday, the US delegation expressed disappointment with Indonesia’s decision to file a dispute with the body.

“[The US] said it was premature and asked us to reconsider our request to establish a panel,” said Gusmardi.

As the accused, the US is allowed to right to oppose Indonesia’s request during the DBS’s first hearing session, according to the WTO’s Dispute Settlement Understanding (DSU) process. “But at the next DBS session the US will have no right to reject our request,” he said.

President Barack Obama signed the Family Smoking Prevention and Tobacco Control Act into law in June 2009, which prohibits the sale of flavored cigarettes, including clove cigarettes, in the US.

Indonesia maintains that the law unfairly exempts menthol cigarettes from the ban.

According to the Trade Ministry, Indonesian exports of clove cigarettes to the US have ceased since the law went into effect in September 2009.

Due to the ban, Indonesia exported only 9,984 kilograms to the US valued at $US83,616 in 2009, which was down from 30,196 kilograms worth $604,420 in 2007.

The WTO’s Technical Barriers to Trade (TBT) Agreement, which ensures government regulations do not become “unnecessary obstacles” to trade, says that clove cigarettes and menthol cigarettes are “like products” and must be treated identically under law.

Gusmardi said almost 99 percent of clove cigarettes sold in the United States were imported, and most of the cigarettes came from Indonesia. In contrast, menthol cigarettes are primarily manufactured by the US companies.  

“The US ban on the importation of clove cigarettes is discrimination, and shows less favorable treatment [of the Indonesian product] when compared to menthol cigarettes,” he said.  

The law on tobacco was approved by the US government to reduce smoking by young people and address a health problem caused a high level of cigarette consumption.

According to US reports, 43 percent of young smokers smoke menthol cigarettes — almost a quarter of all cigarettes sold in the US.  

Clove cigarettes comprise less than 1 percent of the total number of cigarettes consumed by young smokers and less than 1 percent the total number of cigarettes sold in the US, according to reports.

Gusmardi said the prohibition on clove cigarettes might be ineffective in reducing youth smoking because the same prohibition was not imposed on menthol cigarettes. (ebf)

Popular

30 Indonesian 'pilgrims' nabbed in Jeddah for visa violation

Jungle music: Chimp drumming reveals building blocks of human rhythm

Malaysia seeks trade legal harmonization in ASEAN