LETTER FROM TRADE MINISTER PANGESTU TO ACTING U.S. TRADE

UNCLAS JAKARTA 000183 SIPDIS SENSITIVE DEPT PASS TO USTR ALLGEIER DEPT FOR EAP/MTS, EB/TPP/BTA USTR FOR KELHERS E.O. 12958: N/A TAGS: BEXP EINV ETRD ECON ID SUBJECT: LETTER FROM TRADE MINISTER PANGESTU TO ACTING U.S. TRADE REPRESENTATIVE ¶1. SUMMARY: U.S. Embassy Jakarta received official correspondence from Government of Indonesia (GOI) Minister of Trade Mari Pangestu addressed to United States Trade Representative (USTR) Peter Allgeier. The letter, dated January 29th, 2009, details GOI objections to draft tobacco control legislation under consideration by the U.S. Congress. Pangestu argues that the legislation, if enacted, would constitute a violation of World Trade Organization (WTO) agreements. The full text of the letter is included below. End Summary. ¶2. Begin text: Minister of Trade of the Republic of Indonesia No.93 IM-DAG/1/2009 Jakarta, 29 January, 2009 His Excellency Mr. Peter Allgeier Acting United States Trade Representative 600 17th Street, N.W. Washington, DC 20508 Dear Ambassador Allgeier: I am writing once again to bring to your attention a matter of great importance to my country regarding The Family Smoking Prevention and Tobacco Control Act, which we understand Chairman Kennedy and Chairman Waxman are in the process of reintroducing. The Indonesian government has repeatedly communicated our strong concerns that Sec. 907 of the Act is inconsistent with the general principle of the WTO on nondiscrimination as well as the WTO Agreement on the Technical Barriers to Trade. We continue to hope that, as this legislation moves, the Section 907 will be modified to eliminate the discriminatory treatment of clove cigarettes. In this regard, the Government of Indonesia seeks a modification to the bill prior to its introduction that would give equal treatment to clove cigarettes and menthol cigarettes. Chairman Kennedy's mark of the bill in 2007 included appropriate language treating clove and menthol cigarettes with parity. I would like to request your assistance in encouraging Chairman Kennedy and Chairman Waxman to include similar language in the bill when it is reintroduced in the 111th Congress so that Indonesia does not have to take action in the WTO. Thank you for your kind attention. Yours sincerely, Singed Mari Elka Pangestu End text. HUME