U.S. Wants Abolition of Import Barriers on its Goods

Jakarta (ANTARA News) – The U.S. government demands abolition of restriction both tariff and non tariff barriers on its goods imported into Indonesia if the country wants the United States to keep the generalized system of preferences (GSP) facility for a number of Indonesian goods.

Indonesia is favored with big surplus in trade with the United States, therefore, Washington wants Jakarta to remove all restrictions on their exports to Indonesia, Trade Minister Enggartiasto Lukita said here on Wednesday.

Currently, the Indonesian Government is working on a proposal to the United States that the GSP facility will not be lifted, the minister said.

He said the government will meet with the United States Trade Representative (USTR) in that country by the end of July this year to discuss the GSP issue.

If the GSP facility is finally lifted , the deficit in the countrys trade balance would likely widen .

There are goods in 3546 tariff categories given import duty facility by the United States. The United States said GSP has contributed to the surplus which has continued to be recorded by Indonesia in trade with that worlds largest economy.

Indonesia recorded a surplus of around US$14 billion every year in the bilateral trade.

The minister said a number of matters drawing the U.S. attentio9n in the bilateral trade is import barrier on U.S. horticulture products and soybean.

“They are concerned with the import barrier on horticulture products although we already plan to lift the tariff barrier in line with the rule of the World Trade Organization (WTO),” he said.

They also want removal of non tariff barrier on U.S. soybean imports into Indonesia, he added.

The United States is evaluating the GSP facility they have provided for a number of developing economies including Indonesia.

The evaluation was an order from President Donald Trump himself after seeing the continued deficit that country has in trade with Indonesia, the minister said.

Trump was reported to make the final decision on the GSP facility in November 2018.

Source: ANTARA News