Indonesia Wins WTO Case In ' Cigarettes ' With U.S.

Indonesia Wins WTO Case In ' Cigarettes ' With U.S.

World Trade Organization ( World Trade Organization - WTO ) again won the Indonesian position in the case of ' cigarette ' with the United States ( U.S. ) .

The decision issued by Appellate Body report ( AB ) on April 4, 2012 which stated that the U.S. violated WTO rules and U.S. policy considered a form of trade discrimination .
Indonesia won both the panel and appellate level , it is the success of our trade diplomacy .

This victory is important not only for Indonesia , but all countries in terms of respect the decision of the WTO .

According to Director General of International Trade Cooperation of the Ministry of Trade , Faith Pambagyo , cigarette case between Indonesia and the U.S. began with the enactment of the Family Smoking Prevention and Control Act in the U.S. tobacoo .

The law aims to reduce the rate of young smokers in the U.S. society by banning the production and trade of flavored cigarettes , including clove cigarettes and fruit -flavored cigarettes .

However , these provisions exclude menthol flavored cigarettes in the U.S. domestic production .

After a long consultation process lasting without reaching agreement , Indonesia finally propose the establishment of the Panel to the WTO Dispute Settlement Body ( the Dispute Settlement Body - DSB ) on the basis of the U.S. violated WTO provisions on National Treatment Obligation set forth in Section 2.1 Technical Barrier to Trade ( TBT ) Agreement .

" In the National Treatment principle , any WTO member state is obliged to provide equal treatment of similar products both domestically produced and imported from other WTO members , " said Imam .


The WTO panel found that U.S. policy is not in accordance with the provisions of the WTO as clove cigarettes and menthol cigarettes were similar products ( like products) and both have the same appeal for young people .

According to the WTO , the policy that distinguishes the treatment of two similar products is an unfair act ( less favorable ) .

The U.S. government is not satisfied with the panel 's decision issued on 2 September 2011 , an appeal to the WTO on January 5, 2012 .

AB comparative results issued yesterday reiterated that the earlier panel decision was correct and the U.S. government has issued a policy that is not consistent with WTO provisions .

In addition, the AB found that the U.S. violated the provisions of Article 2:12 TBT Agreement in which the U.S. does not allow sufficient time ( reasonable interval ) between socialization policy and policy -setting time .

Furthermore , AB recommends to the DSB to request the U.S. government to make policy in accordance with the provisions of the TBT Agreement .

The Indonesian government welcomed the AB report and gave a high appreciation for the hard work and wisdom in considering AB Indonesian view of the case .

"The Indonesian government is willing to cooperate with the U.S. in conducting the implementation of the AB report , " said Pambagyo .

Pambagyo emphasized that the purpose of Indonesian clove cigarettes filed a case to the WTO is not only to increase the cigarette exports to the U.S. , but also to secure market access Indonesian clove cigarettes in the U.S. and prevent the U.S. government implemented rules emulated by other countries , including countries of export destination The main Indonesian clove cigarettes . " Indonesia strongly supports the principle of fair trade to participate in maintaining international commitments that have been agreed in the particular WTO TBT Agreement .

All countries should respect , and with a decision expected other member states do not follow the U.S. policy , " he added .

Under the terms of the Dispute Settlement Understanding ( DSU ) Article 17:14 , AB decision will be adopted by the DSB after 30 days of issuance of the report AB , ie at the beginning of May 2012 .