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