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RI seeks amicable solution to chicken dispute with Brazil

Indonesia is seeking to meet officials from the Brazilian government to settle its dispute with the South American country on poultry import restrictions

Linda Yulisman (The Jakarta Post)
Tue, October 21, 2014

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RI seeks amicable solution to chicken dispute with Brazil

I

ndonesia is seeking to meet officials from the Brazilian government to settle its dispute with the South American country on poultry import restrictions.

Brazil initiated a dispute against Indonesia on Friday at the World Trade Organization (WTO), related to the latter'€™s restrictions on the import of chicken meat and chicken products.

Indonesian Trade Ministry director general for international trade cooperation Bachrul Chairi said on Monday that in preparation for a meeting with the Brazilian authorities, his ministry would liaise with the Agriculture Ministry.

'€œBasically, we are trying to convince [the Brazilian government] that our rulings imposed are in compliance with the WTO'€™s regulations,'€ Bachrul told The Jakarta Post.

According to Bachrul, Brazil has deemed some of Indonesia'€™s regulations, such as stricter animal health checks and required import licenses, to have affected its poultry business in Indonesia.

The WTO was quoted as saying in a statement that the Brazilian government considered that Indonesian restrictions '€œeffectively prohibit Brazilian chicken meat and chicken products from entering the Indonesian market.'€

The restrictions have allegedly violated a number of global trade regulations, including the Agreement on Sanitary and Phytosanitary Measures, the Agreement on Technical Barriers to Trade, the Agreement on Agriculture, the Agreement on Import Licensing Procedures and the Agreement on Preshipment Inspection.

Indonesia has imposed measures on animal imports amid health concerns, requiring importers to
be registered and secure special import licenses. It has also tightened up examinations of incoming shipments.

Apart from Brazil, several countries, including the US and New Zealand, have initiated similar complaints against Indonesia in other parts of the rulings.

As the world'€™s the third largest chicken producer and biggest chicken exporter, Brazil delivered around US$7 billion worth of chicken meat and frozen chicken overseas last year. However, it only sent $45,000 worth to Indonesia, Reuters reported.

Asian countries, including Singapore, China, Hong Kong and Japan, are Brazil'€™s biggest sale destinations for its frozen chicken cuts, while all Islamic countries are the key market for its whole frozen chickens.

Indonesia will have 60 days after the complaint'€™s submission to the WTO to resolve this issue with Brazil. Should the dispute end in a standoff, the body will establish a dispute settlement panel to process the complaint.

Brazilian Ambassador to Indonesia Paulo Alberto da Silveira Soares, did not respond to The Jakarta Post'€™s inquiry for comment on Monday.

Brazil has lodged 26 disputes to be settled by the WTO.

Previously, it filed a few cases relating to restrictions hampering its chicken sales. Its last dispute on chicken exports was with South Africa in 2012.

'€”JP/Linda Yulisman

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