US Challenges Indonesia Import Restrictions on Horticultural, Animal Products

Last week, the US filed a request to launch consultations with Indonesia over the latter’s alleged import restrictions on horticultural products, animals, and animal products (DS455).

“Indonesia’s opaque and complex import licensing system affects a wide range of American agricultural exports,” US Trade Representative Ron Kirk said in a statement announcing the move. “It has become a serious impediment to US agricultural exports entering Indonesia, reducing Indonesian consumers’ access to high-quality US products.”

The US trade official also noted that the complaint is part of Washington’s broader effort to “make clear to our trading partners that we will fight to support each job here at home affected by unfair restrictions abroad.”

Indonesia’s policies, the US claims, are inconsistent with the WTO’s General Agreement on Tariffs and Trade, Agriculture Agreement, and Import Licensing Agreement. Specifically at issue in Washington’s complaint are non-automatic import licensing requirements for horticultural products, as well as a similar licensing and quota regime for beef and other animal product imports.

Jakarta’s recent reductions in quotas for beef and other animal product imports are also cause for concern, Washington says.

“These licensing regimes have significant trade-restrictive effects on imports and are used to implement what appear to be WTO-inconsistent measures,” the complaint reads. The US-issued document also cites - among other concerns - the administrative burdens incurred over the various steps of the licensing process, the alleged lack of transparency in Indonesian authorities’ delay or refusal in granting necessary documents in that same process, and the perception that licensing regimes “do not appear to be administered in a uniform, impartial, and reasonable manner.”

The request for consultations is the first step in the WTO dispute settlement process. Should the parties to a dispute be unable to reach a resolution after 60 days of talks, the complainant may request the establishment of a panel to hear the complaint.