A WTO dispute panel agreed with the United States and New Zealand on all 18 points of their challenge of Indonesian trade barriers to imports of fruit, vegetables and meat. The U.S. Trade Representative’s (USTR) office said removal of the barriers could lead to a vast increase in sales of the goods affected by the licensing rules, which totaled $87 million in 2015.
Since 2012, Indonesia, the fourth-most populous nation on earth, imposed licensing requirements that limited when and where imported fruits, such as apples, grapes and oranges could be sold. The same restrictions were placed on vegetables, such as potatoes and onions; and meats, such as beef and chicken, said the USTR. For example, imported beef could be sold only in restaurants and hotels but not in supermarkets. Oranges could not be imported during the harvest season for domestic oranges. Flowers, juices and other animal products also were restricted.
Agriculture Secretary Tom Vilsack said the WTO ruling “will discourage Indonesia from simply substituting new trade-distorting approaches for the measures repealed, restoring American farmers’ and ranchers’ ability to compete.” If the ruling is appealed, which often happens, WTO requires a decision within 90 days. Otherwise, the dispute panel ruling can become effective in 60 days, assuming one of the countries involved in the case files a request.
The USTR scheduled a hearing for Feb. 15 on a request by the U.S. beef industry for reinstatement of penalties on the EU because it bans imports of beef produced with synthetic hormones, said DTN.