More Hurdles to Hamper Indonesian Exports to The United States

Jakarta (Antara Bali) - The Trade Ministry said more hurdles would hamper Indonesian exports to the United States with its amendment to anti dumping and anti subsidy regulations.

Foreign Trade Director General Dody Edward said it is feared the amendments would hurt Indonesian exporters, who would be easily accused of committing dumping and receiving subsidy.

"A number of the amendment points give wider discretion for the U.S. authorities to launch anti dumping and anti subsidy investigations of imports to that country," Dody said here on Tuesday.

The amendments to the Trade Preferences Extension (TPE) Act in June 2015 and Trade Facilitation and Trade Enforcement (TFTE) Act in February, 2016 will benefit the U.S. domestic industry.

Exporters are charged with dumping when they sell their goods at a price lower than the selling prices in their countries of origin, and those would face anti subsidy act if their commodities are subsidized by their respective government.

The amendments to the regulations were based on request from the domestic industries . Under the amended regulations the U.S. authorities such as the Department of Commerce (DOC), International Trade Commission (ITC), and Customs & Border Protection (CBP), could charge Indonesian exporters with dumping or subsidy because of the government policy of providing facility to boost exports.

The amendment to TPE also gives facility for U.S. domestic industry. U.S. industries could claim that they have been hurt as a result of imports and prohibit the U.S. authorities from saying that the domestic industries were not hurt only because they have recorded profit in the past several years.

Meanwhile, the amendment to TFTE gave wider authorities for CBP, which so far ruled dumping based on the decision of DOC. CBP is given wider authority if suspecting dumping.

Indeed, all countries have the right to impose anti dumping and anti subsidy measures by slapping surcharges. However, before imposing the measures, investigations have to be made by the importing countries.

Currently , the United States suffers a significant deficit of US$8.64 billion a year in its trade with Indonesia.

It is feared, the deficit would be used by U.S. industrialists in charging Indonesian exporters with dumping or subsidy in 2017 after the change in its government.

The president elect is expected to be more protectionist against alleged dumping and subsidy by raising its import duties.

"The Trade Ministry would defend Indonesian exporters against alleged dumping and subsidy in the United States," Dody promised.

Director of Trade Security at the Trade Ministry Pradnyawati said Indonesia has often been charged with dumping and subsidy by the U.S. authorities.

Based on official data , the United States has initiated 30 anti dumping and anti subsidy investigations of Indoensian export commodities in that world's largest economy.

The United States is one of the main trade partners of Indonesia. (WDY)