(KPB PTPN, Jakarta) : - India has been imposing high import duties on a number of Indonesian export products and thereby set up trade barriers, a trade official said.
Indonesian Trade Minister Mari Pangestu is visiting India to discuss the possibility of reviewing the high import duties, Imam Pambagyo, a Trade Ministry spokesman, said in a news release.
In addition to the lifting of the trade barriers on Indonesian export products, Mari would also explore the possibility of enhancing trade and investment relations between the two countries.
The main issue to be discussed by the two countries has to do with the betacarrotene content of crude palm oil derivatives (ranging between 500 and 2,500 ppm), which according to Indonesia is as illogical as it was too burdensome.
The imposition of such high import duties on some Indonesian export products and a tendency of that country`s changeable tariff, which also compounds Indonesian exporters, would also be the main topic to be discussed during her stay in India.
Every year, India imports 6.5 million tons of vegetable oil (made of palm tree, soy bean, coconut and sun flower) of which 66.24% comes from Indonesia, the rest from Malaysia.
Indian dumping charges involving Indonesian coated paper is another issue to be raised by the minister. India's authorized dumping agency did not find any losses suffered by similar industries in India.
India's dumping agency had not yet issued a final decision after 25 months. In fact, according to a World Trade Organization regulations such a final decision should have been made not more than 18 months after a case has been reported.
Another barrier has to do with 110% import duty imposed on Indonesian eraca nut and gambier and 38% on cocoa.
During her visit to India, the minister will also attend the eighth meeting of a joint business council during which she is also slated to present a paper on economic development and investment climate in Indonesia.
For the investment sector, the minister will also explore the possibility of enhancing cooperation especially in medicines and information technology.
The value of Indonesian exports to India from 2002 to 2004 continued to increase as could be seen from the ministry's trade data showing that it currently stood at US$1.30 billion, $1.74 billion in 2003 and $2.17 billion in 2004.
In the meantime, the value of Indonesian imports from India in 2002 also recorded a rise. In 2002, the value reached more than $637.77 million, but it rose to $665.61 million in 2003 and $1.1 billion in 2004. (mes)
(Asia Pulse/ANTARA)
Source : http://www.atimes.com
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