Concerns Raised over Trade Measures by the EU, Argentina and Indonesia

At the meeting of the Council for Trade in Goods on 22 June 2012, Argentina and Indonesia jointly expressed concern over a Spanish measure on biodiesel. The United States, the European Union, Japan and some other members criticized new trade measures by Indonesia and reiterated concerns over Argentina’s import licensing regime.

EU measure on biodiesel

In a joint statement, Argentina and Indonesia criticized a recent Spanish Ministerial Order on biodiesel as unjustified discrimination against imports and in violation of the national treatment principle of the GATT 1994 (Article III). They said this measure affected developing countries’ participation in the global chain of production, and discouraged their efforts at industrialization. This statement was supported by Uruguay and Cuba, while Brazil said the matter deserved further examination.

The EU said the Spanish measure was in line with the renewable energy objectives of the EU, and did not prevent the importation of biodiesel from Argentina or other trading partners. It welcomed continuing bilateral discussions on this matter with interested members.

EU ruling on honey

Argentina also expressed concern about a ruling of the European Court of Justice that had affected imports to the EU of honey containing pollen from genetically-modified maize. It said it had raised concerns about this decision in various WTO bodies, including the Committees of Technical Barriers to Trade and Sanitary and Phytosanitary Measures. Uruguay supported Argentina, adding that thousands of its small honey producers have been affected by the EU ruling. Canada, Mexico and the US shared Argentina’s concerns.

The EU said that it is actively reflecting on how to implement the ruling without affecting trade. It said it would continue to discuss this matter bilaterally with interested members.

Argentina’s trade measures

The United States again expressed its deepest concern regarding Argentina’s import licensing procedures. It said that after 14 members issued a joint statement at the previous meeting urging Argentina to remove the trade restrictions, Argentina, instead of easing, introduced new measures and reinforced existing ones. The EU said that last month, it had requested dispute settlement consultations with Argentina on this matter. Japan said it was seriously disappointed with Argentina’s measures, and hoped that Argentina would roll back the restrictions in line with the recent G-20 statement against protectionism. It said it would be joining the dispute settlement consultations by the EU with Argentina on this issue. Also expressing concerns about Argentina’s measures were Turkey, Switzerland, Australia, Colombia, New Zealand, Israel, Malaysia, Chinese Taipei and Hong Kong, China.

Argentina reiterated its opposition to the Goods Council singling out a member’s trade policies, and questioned the continued inclusion of this item on the agenda. It maintained that its measures were consistent with WTO rules.

Indonesia’s trade measures

The US expressed concern about what it said was an expanding web of trade restrictions in Indonesia. It cited import licensing requirements on many products including livestock, textiles and apparel, electronics, household appliances and food and beverages, disguised pre-shipment inspection requirements, and local content requirements including in the energy sector. The EU said trade restrictions have effectively stopped some imports, and expressed particular concern over new regulations affecting horticulture and animal products. It urged Indonesia to notify the new measures to the WTO. Also expressing concerns were Japan, Korea, Canada, New Zealand and Australia.

Indonesia said that its trade policies needed to address the needs of millions of poor people in the country. It said it was reviewing some of the regulations, noting its recent decision to postpone the implementation of some of the measures. It said it would continue its dialogue with other members on this issue in various WTO committees.

Ecuador’s “mixed tariffs”

The US reiterated its concerns that Ecuador’s “mixed tariffs” on products such as footwear and textiles might have gone beyond the country’s bound tariffs. It urged Ecuador to provide the required transparency on the ad valorem equivalent on the products affected. Japan, EU and Switzerland shared the US concerns.

Ecuador said that trade flow figures during the first four months of this year showed continued growth in imports of the products covered by the mixed tariffs system.

Electronic commerce

Ecuador said that the Council’s work programme on electronic commerce should recognize the need for benefits of information technology to spread to developing countries, and in particular small and medium enterprises. Cuba, Nicaragua, Venezuela and Argentina supported Ecuado’s statement.

The US said it was still reflecting on this issue, including on making permanent the current WTO moratorium on imposing customs duties on electronic commerce.

Notifications

The Council adopted a draft decision submitted by the Committee on Market Access for members to make complete notifications of all quantitative restrictions in force by 30 September 2012 and at two yearly intervals thereafter.

It also approved a recommendation adopted by the Working Party on State Trading Enterprises for an indefinite extension of the current practice of submitting new and full notifications on state trading enterprises on a biannual basis.