JAKARTA LIFE'S STYLE

The US Trade Ministry has implemented anti-dumping duties for layered paper products from Indonesia and China. The regulation was issued following an investigation carried out by local authorities, which concluded that Indonesian and Chinese paper producers were carrying dumping activities and getting subsidies at the same time.

“The temporary duty has been applied, but it is still being investigated,” said Foreign Trade Director General Gusmardi Busthami, via his cellular message on Wednesday.

Gusmardi confirmed that the US policy was not to counter the Indonesian government for suing the US to the World Trade Organization (WTO) following its ban on clove cigarette imports.

The WTO has formed a panel consisting of Costa Rica, Japan and Uruguay to discuss the US ban on Indonesian clove cigarette products.

The US banned the imports of clove cigarettes saying it could cause health hazard. Meanwhile, other products similar to clove cigarettes can still enter the US.

The Trade Ministry’s Trade Security Director, Ernawati, said her office had received reports from the US stating the results of the US Trade Ministry’s investigation and their calculation about the dumping rates and subsidies of Indonesian companies.

Ernawati gave assurances that the regulation was still preliminary. “The final decision will be made on November 4,” she said.

An official statement released by the US Trade Ministry yesterday cited that Indonesian exporters or producers sell layered papers at 20.13 percent profit. The statement also charged that Indonesian producers receive up to 18 percent in subsidy.

At the end of 2009, American paper producers; NewPage Corp, Appleton Coated LLC, and Sappi Fine Paper, together with the The United Steelworkers of America workers union submitted an anti-dumping and anti-subsidy (countervailing) petition against Indonesian and Chinese layered paper producers.

They blamed the Indonesian and Chinese governments for dumping layered paper products, which are used for car brochures and company annual reports.

Gandhi Sulistyo, the Managing Director of Sinar Mas said his company had suggested the government bring the dispute to the WTO. “They have conducted unfair trading practices in protecting their products,” Gandhi told Tempo on Wednesday.

The suggestion has been passed on to the government before the US anti-dumping policy was released in the media yesterday. But the government’s reaction has been to urge Sinar Mas to carry out a bilateral dialogue with the US. “But they remain stubborn,” he said.
(tempointeractive)

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