“Improving our Understanding of WTO Law and Defending Against Unfair Trade Practices”

Pradnyawati

Director of Trade Defense

Directorate General of Foreign Trade

TPSA Project Final Conference - June 26, 2019

Focus: Knowledge, Skills Acquired and Outcomes, Impacts and Benefits Gained

GLOBAL USE OF TRADE REMEDIES(2012 - 2017)*

Year 2012 2013 2014 2015 2016 2017 Total

Anti-dumping 121 161 157 181 171 194 985

Safeguard 6 8 11 11 6 10 52

Countervailing 10 13 11 15 24 18 91

Total 137 182 179 207 201 222 1128

Source: WTO, 2019*Note: Data on this indicator are only available until 2017

TRADE REMEDIES IMPOSED BY INDONESIA(2012 - 2017)*

Year 2012 2013 2014 2015 2016 2017 Total

Anti-dumping 4 5 3 6 0 3 21

Safeguard 1 1 2 3 0 0 7

Countervailing 0 0 0 0 0 0 0

Total 5 6 5 9 0 3 28

Source: WTO, 2019*Note: Data on this indicator are only available until 2017

• Within 5 years there has been an increase of 60% in the GLOBAL imposition of TR onimported goods, from 137 cases in 2012 to 222 cases in 2017

• Trade Remedies Imposed by Indonesia (2012 – 2017) is relatively minimal, with a share of2.5% of the total imposition of TR

• Indonesia has never used Countervailing duty on imports of subsidized goods yet

THE INCREASED USE OF TRADE REMEDY INSTRUMENTS BY TRADING PARTNER COUNTRIES

Our Objectives

Increasing

trend global usage of trade

remedy instrument by

WTO Members

8th as the most frequent target of

dumping investigations (208

investigations)

4th as the most frequent target of anti-

subsidy investigations (22 investigations)

STATUSDUMPING SUBSIDI SAFEGUARD TOTAL

APPLIED 101 9 22 132

TERMINATED 106 12 43 161

ON PROCESS 23 4 10 37

TOTAL 230 25 75 330

Source : Database DPP – June 2019

Improvement of DPP’s personnel

competency is therefore very critical,

including:

▪ train new staffs

▪ build the capacity of existing staffs

▪ increase the number of cases of trade

remedies that can be handled

▪ increase the quality of case

management and submissions

▪ reduce the number of cases including

subsidies allegations

2nd as the most active user of safeguard

measures (27 initiations)

Indonesia’s Position

Period: 1995-2017

India, 53Amerika

Serikat, 37

Uni Eropa, 36

Australia, 28Turki, 23

Malaysia, 19

Philipina, 15

Afrika Selatan, 14

Brazil, 11

Lainnya, 90

TOP 10 COUNTRIES INVOKING TRADE REMEDIES INSTRUMENT TO INDONESIA

4

TOP 5 MOST FREQUENT PRODUCTS UNDER INVESTIGATION

STEEL (59)

TEXTILE (55)

WOODS PRODUCTS (51)

CHEMICAL (48)

INDUSTRIAL MINERAL (36)

Most Frequent:

Investigating Countries

and Targeted Products

1. Introductory Training Workshop on WTO Trade Remedies (20-22 March

2017)

2. Advanced Training Workshop on WTO Trade Remedies (17-19 July 2017)

3. ACWL Course: WTO Law, Dispute Settlement (via Directorate of

Multilateral Negotiation) (26-29 March 2019)

Training Related to Trade Remedies from TPSA

Knowledge and Skills Gained:

• WTO rules on anti-dumping

• when and how to apply and counter anti-dumping measures

• ability to identify certain regulation that contain subsidies and

potentially to be countervailed

• when and how to apply and counter safeguard measures to protect

against import surges

• how to access information of WTO jurisprudences

• how to draft constructive arguments and make better submission

Workshops on WTO Trade Remedies

Benefits, Outcomes and Impacts Gained:

• To increase staff's competency to perform legal analysis of various

cases and prepare legal submissions.

• To increase staff’s ability to handle cases in a systematic and

structured manner so that it becomes more effective and efficient.

• DPP has succeeded in terminating proceeding of anti-dumping

investigation of Non-Woven Fabrics initiated by Indian Investigation

Authorities, which is also one of the discussion topics in the TPSA

training.

Workshops on WTO Trade Remedies

Knowledge and Skills Gained:

• Directorate of Trade Defense’s staffs and other participating technical

ministries gained operational knowledge and skills on WTO Laws

• Participants have better understanding in formulating public policy that

is consistent with WTO Law

• Participants learned about dispute settlement mechanisms

ACWL Course: WTO Law, Dispute Settlement

Benefits, Outcomes and Impacts Gained:

• To increase staff’s knowledge on WTO Jurisprudences (Panel and AB

Report) in several area of WTO Laws such as TBT and SPS.

• To gain better understanding in Dispute Settlement Proceeding and

the benefit for a country for being third party in certain WTO Cases.

• Other participating ministries learned how to avoid triggering future

subsidies allegations/disputes against Indonesia via their improved

understanding of WTO rules.

ACWL Course: WTO Law, Dispute Settlement

Results of Partnership with TPSA

Positive impact to the performance of the Directorate of Trade Defense (DPP) and other related trade remedies units

Better understanding of WTO legal regulations and frameworks with Canadian best practices

Increased the DPP's ability to analyze and make submissions at each stage of the trade remedies investigations

New knowledge and skills in handling

trade remedy cases

Increase awareness how to

formulate regulations that would not

trigger subsidies’ allegations or

disputes

Indonesia was able to terminate 9

cases and 8 cases of trade remedies

in 2017 and 2018 respectively, an

increase compared to 6 cases in 2016

❖ The GOI managed to secure 19

cases/allegations against Indonesia’s

Exports in 2018.

❖ The GOI did all the best efforts to defend

the market access of Indonesian exports

both in trade remedy cases and other

trade barrier (TBT and SPS) cases,

including in DSB WTO.

The GOI stands ready to defend the market

access of Indonesian’s exports in other

countries that in turn will boost the

Indonesian economy.

SUCCESS STORIES

11

DIRECTORATE OF TRADE DEFENSE

DIRECTORATE GENERAL OF FOREIGN TRADE

MINISTRY OF TRADE

....Thank You, Canada!....

....Thank You, TPSA!....