Safeguard was one of the protective instruments in international trading
which was similar to anti-dumping. The three instruments were regulated in WTO
which regulated that certain imported products could be charged with extra tax
if they caused injury on importer nation. Safeguard was also regulated by
Indonesia law i.e. keppress no 84 year 2002on securing domestic industry
against storming import and regulation of the ministry of trade no 37/2008 on
certificate of origin for ported goods which were being controlled.
Based on the safeguard agreement every country had the right to take
action to protect their domestic product in the event that the domestic
Industry were unable to compete and suffer serious losses as result of flooding
foreign products. Today’s phenomenon was acts of safeguarding increasing by
intensity all over the world in the effort to protect the domestic market from
the invasion of imported products. “Every country was allowed to safeguard
their domestic market. That was the trend that heightened acts of
safeguarding.” The deputy minister of trade Bayu Krisnamurthi was quoted as
saying in Jakarta on Monday [22/4].
Bayu saw that world’s economic slowdown had increased acts of
safeguarding among nations. Therefore Indonesia must step up capability clarify
any case to WTO; the objective was to safeguard the domestic market from the
present world economic condition, bayu called out all parties to wisely
encounter all problems. Stepping up of capacity and capability was needed to
overcome all problems.
Bayu showed as an example the case when recently the US government
brought a case to WTO in regard to regulations on import of horticulture
products by Indonesia and axing of quota for importing cow’s meat. Now again
the USA made accusation addressed to Indonesian export products. This time, the
target was frozen shrimps. Bayu explained that coalition of Gulf Shrimp
Industries [COGSI] of the USA had addressed petition of anti-subsidy to
Indonesia in regard to export of frozen food. The accusation was not only
addressed to Indonesia but also to India, china, equador, Vietnam, Thailand,
and Malaysia.
The deputy minister of trade remarked that global economic crisis had
spurred on acts of safeguarding by nearly all countries of the world. The
objective was to protect their respective domestic industry and win the global
competition amidst shrinking market absorption capacity. He said that many
countries were exercising safeguarding practices to keep their industries from
closing. On the other hand, there were countries who gave incentives to their
industry which was in fact prohibited by WTO.
He admitted that Indonesia had also implemented trade remedies
instruments like anti-dumping and safeguard. According to Bayu Indonesia had to
do safeguarding as there were certain conditions which disadvantaged the
domestic industry. He claimed that Indonesia had exercised anti-dumping claims
to wall out import of cheap products which threatened the domestic industry.
Indonesia had also exercised safeguard in the form of import tax or import
quota. So far Indonesia had never extended subsidy on the national industry.
Bayu reminded that economic contraction Europe and American in 2013
might generate the impact of flooding import in Indonesia. He disclosed that
the USA and Europe commanded over 50% or USD 30 – USD 35 trillion of the
world’s total economy which amounted to around USD 70 trillion. However, many
circles predicted that this year Europe would have contraction of 1% and North
American 1%- 2% or equal to GDP downturn of Rp300 billion in the two
regions.(SS)
Business News - April 26,2013
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