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.
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