U.S., NZ take Indonesia to WTO over import license restrictions - FreshFruitPortal.com

U.S., NZ take Indonesia to WTO over import license restrictions

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U.S., NZ take Indonesia to WTO over import license restrictions

The governments of the United States and New Zealand are taking Indonesia to task over the country's non-tariff barriers for produce, meat and other agricultural products. shutterstock red grapes white background sq

United States Trade Representative Michael Froman said the U.S. had requested the World Trade Organization (WTO) to establish a dispute settlement panel to examine Indonesia's policies.

The release said the world's fourth most populous country's import licensing regimes affected U.S. agricultural exports to the tune of nearly US$200 million last year.

The U.S. exported US$122 million worth of horticultural products to Indonesia in 2014, including US$50 million in apples and more than US$37 million in grapes, but farmers would be expected to compete more effectively for sales in the absence of the country's "trade-restrictive import licensing regime".

In comparison, Malaysia's population is one eighth the size of Indonesia's yet it imported just US$6 million more in U.S. produce than its southern neighbor.

"The implications of Indonesia’s trade regulations are particularly relevant for Washington State, because my state is one of the top exporters of horticultural products, including apples, to Indonesia," said Rep. Rick Larsen (WA-2).

"This barrier to a critical market has created a guessing game about what Indonesia’s future needs will be, leading to major uncertainty for our farmers. I am pleased USTR has taken action to hold our trading partners accountable."

Another Washington State Congressman, Dave Reichert, echoed Larsen's comments.

"By limiting access to an important market for Washington's apples and pears, Indonesia's trade restricting actions have harmed Washington’s thriving agricultural sector which supports communities across the state," he said.

"I applaud Ambassador Froman for his commitment to challenging these barriers, so that our specialty crop producers can reliably access a top market."

Oregon Congressman Kurt Schrader said the strong enforcement of U.S. trade agreements was imperative to protecting American workers and businesses.

"The unfair trade restrictions being imposed by Indonesia are hurting America’s producers and it's critical that the USTR continue to take the enforcement actions necessary to maintain a level playing field for U.S. small businesses, especially our farmers and ranchers," Schrader said.

"Our small business owners need the ability to export their high-quality products, free of prohibitive limitations and I hope this measure will prevent further economic growth from being stifled."

Photo: www.shutterstock.com

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