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View all search resultsUS trade investigations against Indonesia and other countries over alleged unfair practices could give Washington new leverage in bilateral negotiations after the US Supreme Court struck down the initial legal basis for the Agreement on Reciprocal Trade (ART).
he government says it is still looking to ratify the bilateral trade deal with the United Stated as trade investigations launched by the US could give Washington a new legal basis to impose steep import tariffs on Indonesian goods.
Haryo Limanseto, spokesperson for the Office of the Coordinating Economy Minister, told reporters on Friday that Indonesia "still wants" to ratify the Agreement on Reciprocal Trade (ART), despite a recent US Supreme Court ruling invalidating the initial legal justification.
Jakarta had been in touch with the US Trade Representative (USTR), which had told Indonesia to "just follow" the investigation process, he said.
This comes after the US opened investigations based on Section 301 of the 1974 Trade Act against 16 countries, including Indonesia, with the intention of imposing tariffs over what the administration of US President Donald Trump deems unfair practices.
"So, these investigations will focus on economies that we have evidence appear to exhibit structural excess capacity and production in various manufacturing sectors, such as through larger persistent trade surpluses or underutilized or unused capacity," US Trade Representative Jamieson Greer was quoted as saying by Reuters on Thursday.
Washington has also opened separate investigations into forced labor using Section 301 against 60 countries. Indonesia finds itself on that list among fellow emerging markets Brazil, China and India, as well as developed economies like Canada, Singapore and Switzerland.
The investigations come less than a month after the US Supreme Court struck down wide-ranging tariffs imposed by Trump’s administration on April 2 last year.
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