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Indonesia to file suit against US to World Trade Organisation

Source
Tempo Interactive - September 24, 2007

RR Ariyani, Jakarta – The Indonesian government will file a lawsuit against the United States at the World Trade Organization (WTO), following a similar measure by China last week.

The report was related to the US measure that is regarded as unfair. The Uncle Sam country accused Indonesia carrying out dumping and protection with regard to paper products. The US then began charging antidumping import duties and anti-protection import duties on paper products from Indonesia.

"Actually we want to be the first to file such a lawsuit," said Martua Sihombing, Director of Trade Security at the Trade Department, last weekend in Jakarta.

According to him, being the first or second party allows Indonesia to be more outspoken in voicing an objection of unfairness. "We can also argue. But being a third party is only sitting without giving statements," he said.

Previously, the US had already made the accusation that coated free sheet paper from Indonesia had received subsidy prices amounting to 21.24 percent and a dumping price of 15 percent.

Two major Indonesian lined-paper exporters, PT Tjiwi Kimia and Sinar Mas, then preferred transferring their exports to the Asian region in response to the US accusation.

The unfair measure of the US was considered to be due to fabricated reasons. The program of industrial forest estates, which for instance gave interest rate relaxation, was considered as a form of covering up subsidies.

Furthermore, the US accused that the market segment absorbed by Sinar Mas' paper products in the US had reached four percent.

The US applied a very tight schedule for filling questionnaires and the questioned items were very wide (Koran Tempo, May 21). In addition, Martua said the department still continued studying the possibility to bring charges against the US.

The government is still considering about collaborating with China or going forward alone.

However, Martua acknowledged he was pessimistic. Indonesia's effort to bring this matter to WTO appears to be difficult.

In addition to expensive fees for hiring a lawyer, either in the US or Geneva, there are a lot of pressures of not dealing with the superpower country.

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