DEMARCHE DELIVERED: INDONESIA CONSIDERS U.S.-EC TAFT GOODS

UNCLAS JAKARTA 000396 SIPDIS SINGAPORE FOR SUSAN BAKER SIPDIS SENSITIVE DEPT PASS TO USTR SCHWAB DEPT FOR EAP/MTS, EAP/IPE, EB/TPP, EB/TPP/BTA COMMERCE FOR JKELLY AND EBRZYTWA GENEVA PASS TO USTR USTR FOR BNORTON AND JWEISS USTR FOR BWEISEL AND KELHERS TREASURY FOR IA-BAUKOL EEB FOR ASCHEIBE E.O. 12598: N/A TAGS: ECON ETRD WTO ID SUBJECT: DEMARCHE DELIVERED: INDONESIA CONSIDERS U.S.-EC TAFT GOODS PROPOSAL REF: STATE 12905 ¶1. (SBU) SUMMARY: Embassy Jakarta and the European Commission (EC) jointly delivered reftel demarche to Mr. Ansari Bukhari, Director General of Textiles, Metal and Multifarious Industries, Ministry of Industry. He had not seen the joint proposal yet, so we gave him a copy and reviewed the main points. Bukhari said that the Government of Indonesia (GOI) agreed "in principle" to streamlining and standardizing labeling but would need to study the proposal more closely before committing to publicly co-sponsor or support it. End Summary. ¶2. (SBU) Bukhari explained that the GOI was in process of preparing new legislation on labeling requirements driven by concerns over consumer protection and controlling illegal transshipments. He said that if the Taft Goods proposal simplifies labeling, Indonesia would consider supporting it. Bukhari expressed reservations though on supporting any measure that while ostensible streamlining requirements would actually complicate them. He added "Indonesia has had bad experiences" with regulations that in effect become new technical barriers to trade, especially for small businesses. He mentioned specific concerns on requirements relating to textile content (which could become an issue as the proposal allows for fiber content.) ¶3. (SBU) Bukhari explained that that Indonesian industry have so far not complained over labeling requirements on their exports, but saw the advantage of reduced cost through harmonized labeling requirements. He promised to study the proposal and share it with his intra-ministerial colleagues and advise us if the GOI has any specific objections. HUME