Advanced Training Workshop on WTO Trade Remedies Trade Defense in - - PDF document

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Advanced Training Workshop on WTO Trade Remedies Trade Defense in - - PDF document

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2017-07-17 Advanced Training Workshop on WTO Trade Remedies Trade Defense in Indonesia: Challenges and Opportunities Director of Trade Defense, DGFT, Ministry of Trade Bogor, Indonesia July 17-19, 2017 Trade remedy is a trade policy tool

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Trade Defense in Indonesia: Challenges and Opportunities Advanced Training Workshop

  • n WTO Trade Remedies

Director of Trade Defense, DGFT, Ministry of Trade Bogor, Indonesia July 17-19, 2017

Trade remedy is a trade policy tool Allow governments to take exceptional measures to the WTO basic principles by exerting remedial actions against imports which are causing material injury to the domestic industry. There are three trade remedies under the WTO.

Anti-dumping Anti-subsidy or countervailing Safeguards

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Most-Favoured-Nation (MFN) principle

Prohibits discrimination between imports irrespective

  • f their origin or destination

Binding Principle

Advocates adherence to the bound rates in Member’s Schedules of Tariff Concessions

National Treatment principle

Prohibits discrimination between imported and locally produced products

Quantitative Restriction Principle

Prohibits the introduction or maintenance of quantitative restrictions

Directorate of Trade Defense & Trade Advocacy Bureau Securing Foreign Trade Access

  • Trade remedies defense
  • Defense on Indonesian export

products

  • Defense on unfair/obstructed

foreign trade regulations or practices

  • Defense on domestic trade

regulations and practices. INDONESIAN ANTI-DUMPING COMMITTEE Securing Domestic Market

  • Investigation on anti-dumping

and anti-subsidy

  • Recommendations and

reviews on anti-dumping and anti-subsidy duties INDONESIAN SAFEGUARDS COMMITTEE Securing Domestic Market

  • Investigation and

recommendations on safeguards duties(Safeguard Measures)

Law No. 7/2014 Concerning Trade Chapter IX Article 67-72

Mandates the Function of Trade Defense to the Ministry of Trade LEGAL BASIS OF TRADE REMEDIES OF INDONESIA

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STATUS

1995 - 2017

TOTAL DUMPING SUBSIDY SAFEGUARD Applied 102 6 22 130 Terminated 93 12 33 138 On Process 19 4 5 28 Total 214 22 60 296 D

DPP on Trade Remedy Cases

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2017-07-17 4 India, 45 European Union, 34 United States, 32 Australia, 25 Turkey, 21 Malaysia, 18 South Africa; 13 Phillipines; 12 Brazil, 11 Pakistan, 11 Others, 73

Countries Invoking Trade Remedy Instruments to Indonesia

A B C D A

DPP on Trade Remedy Cases

A B C D A

10 20 30 40 50 60 Logam Kimia Kertas TPT Kaca Perkebunan Sawit Kayu Alas Kaki Perikanan Lain-Lain 58 57 49 40 30 10 9 8 7 2 26

Products Subject to Foreign Trade Remedy Measures

DPP on Trade Remedy Cases

Others Fishery Footwear Woods Palm oil Plantation Glass Textile Paper Chemical Metal

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TRADE REMEDIES on FOCUS: UNITED STATES

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and subsidy and subsidy and subsidy and subsidy and subsidy

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2017-07-17 7 MARCH 31, 2017

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UNITED STATES uses safeguards approach which is rarely used in the past In June only, there were 2 (two) safeguards allegations initiated by the US

NEW APPROACH OF TRADE REMEDIES FROM UNITED STATES

Safeguards on Crystalline Silicon Photovoltaic Cells (solar panel)

  • June 1st

Safeguards on large residential washers (washing machine)

  • June 12th

Although Indonesia is on the radar of US trade hit list, the country still have opportunity to ramp up its export to the US…..

INDONESIA-US: FRIEND OR FOE?

US is still focusing on countries with largest trade surplus such as China with USD 347 billion surplus followed by Japan, Germany, Mexico, Ireland and Vietnam Indonesia still have more

  • pportunities in the market,

particularly in fisheries export as 80% of US fishery domestic consumption is coming from import Indonesia and US have managed to talk as a friend in the bilateral G2G forum, namely Indonesia-US Trade and Investment Framework Arrangement-Trade and Investment Council (TIFA-TIC) Forum held in June 2017

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DS 406

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ROLE OF THE STAKEHOLDERS

  • Trade diplomacy:

set up a strategic collaboration and pressure group

Proactive

  • Trade Advocacy:

Defending Indonesian export

Defensive

  • Trade Litigation:

DSB - WTO

Offensive

Coordinating with the Government Collaborating with

  • ther exporters to

gain market access Making good relationship with other exporters/importers Comply with domestic and international rules

Industries

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Be careful with the increasing trend of trade remedies instrument usage. Indonesia’s export is at stake! Lack of competent trade lawyers and international trade specialists in Indonesia Lack of engagement and communication between government, academics and businesses in every stage of rule making

Challenges

There is big opportunity to educational institution in Indonesia to create trade remedies’ experts Engage all stakeholders and create environment that is well-aware of trade remedies in order to make better future strategies Take innovative approaches on products and seek for new export markets. Use preventive actions instead

  • f defensive actions on trade remedies, e.g. engage

more with importers, consumer organizations and/or user industry

Opportunities

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Directorate of Trade Defense Directorate General of Foreign Trade Ministry of Trade of Indonesia 2nd Building, 10th Floor, MI Ridwan Rais St. No. 5, Central Jakarta

Thank You