WTO Finds in Favor of US in Case Against Indonesia Horticultural Import Policies

A World Trade Organization dispute settlement panel found in favor of all 18 of the U.S.’s claims that Indonesia is restricting and prohibiting imports of horticultural products, animals and animal products inconsistently with WTO rules, the Office of the U.S. Trade Representative announced (here). The U.S. requested consultations with Indonesia in January 2013 over “unjustified and trade-restrictive” import licensing regimes for those products (see 13011114), which USTR says have been in place since 2012. Alongside New Zealand, the U.S. filed additional complaints in August 2013 (see 13083024) and May 2014 (see 14050930). Specifically, the dispute panel found (here) that Indonesia’s import-restricting measures for horticultural products were inconsistent with General Agreement on Tariffs and Trade Article XI. Measures challenged by the U.S. include Indonesia’s requirement for importers to import at least 80 percent of the quantity for each product allotted on each license or face steep penalties, its restriction on horticultural imports during harvest periods to avoid competition with domestic products, and constraints on importing certain products when market prices fall below government-determined “reference prices,” USTR said. Indonesia has 60 days to appeal the panel’s decision.