I

ndonesia has filed a complaint with the World Trade Organization (WTO) because it says its coated paper shipped to the US has become a target of punitive duties at the hands of the US authorities.

The US has imposed a 20.13 percent anti-dumping tariff and a 17.94 percent countervailing tariff on Indonesia'€™s coated paper, which is normally used for high-quality print graphics.

The duties, imposed since 2010, will this year be assessed to determine if they will be extended.

Indonesia stated the measures violated the WTO rules, including Anti-Dumping Agreement and the Subsidies and Countervailing (SCM) Agreement, according to a statement issued by the WTO on Friday.

Indonesia'€™s move was motivated, among others, by its allegation that the benchmark for pricing used by the US to determine the duties was based on prices in another country, said Trade Ministry trade defense director Oke Nurwan.

'€œWe are adopting a precedent set by China, which has won an appeal in one of its trade disputes, as the reference for pricing in the case inquiry was based on prices in other countries,'€ he told The Jakarta Post Sunday.

Similar coated paper from China was also charged with anti-dumping and countervailing duties by the US authorities.

In May 2012, China took the case to the WTO'€™s Dispute Settlement Body and later appealed to the Appellate Body following an unfavorable result.

The levies imposed on Indonesia'€™s coated paper have impacted major producers PT Pabrik Kertas Tjiwi Kimia, PT Pindo Deli Pulp and Paper Mills and PT Indah Kiat Pulp and Paper, grouped under pulp and paper giant Asia Pulp and Paper.

The duties imposed have effectively lowered the shipment of glossy paper, which is generally employed in printing multi-colored graphics for catalogues, books, magazines, envelopes, labels, wrapping paper and greeting cards, from US$69.6 million before 2010 to $16.7 million at present, according to data from the Trade Ministry.

Oke further said he expected the US would immediately respond to Indonesia'€™s request for consultations to settle the issue.

The US must address the request within 60 days and if consultations fail to settle concerns, Indonesia can progress the case into a formal trade dispute.

The Indonesian pulp and paper industry has dealt with repeated dumping and subsidy allegations, including from the US, due to its efficient production that allows competitive prices.

Earlier this year, based on petitions from its domestic stakeholders '€” United Steelworkers (USW) and four paper manufacturers '€” the US suspected that Indonesia, along with Australia, Brazil, China and Portugal, had dumped photocopy paper on the country. In addition, it also claimed that paper makers in Indonesia and China had received improper subsidies.

Indonesia has consulted the US on the issue, but the follow up has not been forthcoming.

Asia Pulp and Paper director Suhendra Wiriadinata did not respond to the Post'€™s request for comment.

'€”JP/Linda Yulisman