INDONESIA - TRADE AGREEMENT COMPLIANCE AND

UNCLAS SECTION 01 OF 02 JAKARTA 012098 SIPDIS DEPT FOR EAP/MTS, EB/TPP/MTA EKOCH DEPT PASS USTR BHIRSH, DKATZ COMMERCE/TCC/4110 MROLLIN SIPDIS DEPT PASS USTR FOR DEPT FOR E.O. 12598: N/A TAGS: ETRD ECON ID SUBJECT: INDONESIA - TRADE AGREEMENT COMPLIANCE AND MONITORING REF: SECSTATE 152063 ¶1. Embassy Jakarta's Economic Section coordinates monitoring of Indonesia trade agreement compliance and responding to foreign trade barrier complaints. International Trade Officer Tobias Glucksman (GlucksmanTH@state.gov) is the primary working level point of contact for these efforts. Embassy's Foreign Agriculture Service (FAS) officers, with support from Animal Plant Health Inspection Service (APHIS),collaborate closely with Econ on U.S. agricultural technical market access issues. Embassy's Foreign Commercial Service (FCS) also advises and supports Econ on additional market access concerns. U.S. Customs representatives in Singapore have collaborated closely with Econ on anti-dumping and transshipment investigations in Indonesia. USAID and DOJ-ICITAP provide valuable trade capacity building assistance to the Government of Indonesia (GOI) in support of our broad trade policy agenda. ¶2. Since 2005, the U.S. has enjoyed a reinvigorated trade dialogue whthp e Indonesia through formal and regular Trade and Investment Cuncil (TIC) talks, led by USTR. Through these reular dialogues and Embassy interventions, the Emassy and USG agencies have raised, and in some case resolved, a number of market access concerns: -- Following interventions through TIC talks and y FAS, APHIS and Econ, the Ministry of Agricultue announced on 22 August that it is preparing tolift its BSE-based import ban, in place since Jul 2005, on boneless U.S. beef imports under the ae of 30 months and meat and bone meal (MBM). Thefirst containers of MBM are already reported to hae made port in Indonesia. -- Econ and Washingon agencies have leveraged one regular and two cosecutive out-of-cycle Special 301 reviews for Inonesia into a substantial increase in law enforcemnt activity against piraacy, significant progressin the implementation on new optical disk regulaions (ODR),and the creation of ministerial-levelnational IPR task force. -- DOJ-ICIPTAP and USAD, with support from Econ, have provided senior PR technical advisors to aassist the GOI in its OR implementation and police IPR enforcement action. -- Econ and Customs Singapore collaborated on nvestigations into allegations of shrimp transshpments through Indonesia. After finding clear evdence of transshipments, EEcon worked with Washinton agencies and the Ministries of Trade and Fiseries to develop and implement new GOI monitoringprocedures to deter further transshipments and ensr"Q credibility of GOOI uurtle excluder device certifications. -- Econ worked with USTR and U.S. Customs to investigate and address allegations of garment transshipments through Indonesia. These efforts led to the September 2006 signing of an U.S.-Indonesia MOU on Textiles Transshipments. -- Econ and FCS successfully lobbied GOI agencies to reduce the magnitude of GOI hikes in lubricant tariffs. -- A joint USTR/Econ intervention helped convince the Ministry of Health to ease pharmaceutical generic labeling rules to meet only an 80 percent or readable standard. -- TIC talks have clarified Indonesia Customs procedures regarding the use of check prices for assessing the value and duty on some imported products. -- TIC talks have clarified that GOI food labeling requirements do not require importers to disclose sensitive intellectual property, such as exact percentages of ingredients. -- FAS continues to provide technical information to the Ministry of Agriculture (MOA) concerning the prevalence of certain species of fruit flies in the U.S. in an effort to convince the MOA to ease new quarantine restrictions on U.S. fresh fruit entering Indonesia. -- Through a variety of formal and informal approaches, the Embassy and Washington agencies continue to press the GOI to ease its ban on imports of U.S. chicken leg quarters in JAKARTA 00012098 002 OF 002 place since 2000. -- USAID manages a 3-year, $13.4 trade capacity building project for the Ministry of Trade. HEFFERN