New Zealand welcomes WTO ruling on Indonesian trade barriers

The New Zealand government Friday welcomed a World Trade Organization (WTO) decision that could free up Indonesia's beef market.

New Zealand and the United States jointly brought the case against Indonesia in 2013 over 18 non-tariff barriers imposed on agricultural imports since 2011.

The barriers included import prohibitions, use and sale restrictions, restrictive licence terms and a domestic purchase requirement.

The barriers are estimated to have cumulatively cost the New Zealand beef sector alone between 500 million and 1 billion NZ dollars (345.15 million and 690.3 million U.S. dollars), Trade Minister Todd McClay said in a statement.

As recently as 2010, Indonesia had been New Zealand's second-largest beef export market by volume, worth 180 million NZ dollars (124.29 million) a year.

"This is an important result for New Zealand's agricultural exporters and for trade fairness," said McClay.

"We are committed to pursuing a range of options for addressing trade barriers that affect New Zealand exporters, including WTO dispute settlement as a last resort," he said.

"As a result of this process, we have already seen some improvements to Indonesia's regulations and gains for New Zealand exporters to Indonesia. These will only improve following implementation of the WTO decision."

New Zealand continued to have a very strong relationship with Indonesia.

"The highly professional and constructive manner in which all parties conducted themselves throughout this case is testament to the resilience of the relationship. We enjoy regular high-level political engagement," said McClay.

"Even close friends have occasional disagreements and the WTO helps insulate trade policy differences from wider bilateral relations."

Indonesia could yet appeal the decision to the WTO's Appellate Body.

source: Xinhua