MARKET ANALYSIS

WTO RULING AGAINST INDONESIAN TRADE BARRIERS

The World Trade Organization (WTO) has ruled in favor of Brazil, which made a case against trade barriers implemented by Indonesia. The decision, published recently, outlines that Indonesia continues to uphold barriers to protein, even after a 2017 decision, which also supported Brazil’s arguments. The contention at the WTO goes back to 2015. A total of 18 countries, in addition to the European Union (EU), which followed the process as a third interested party, build a case against Indonesia. In 2017, WTO ruled that a number of Indonesian import regulations violated the General Agreement on Tariffs and Trade, but the Indonesia didn´t implement the ruling. Currently, the new Indonesian ministry of agriculture is still restricting poultry products from overseas. The Indonesian government can use halal certification to limit chicken meat entering domestic markets, as a Muslim country. The WTO ruling in case DS484 states that the use of halal labelling is not a violation of the regulations because certificates are applied without discrimination. Regardless, Indonesia faced 8 complaints at WTO since 2014. Of the 4 disputes resolved by the panel, Indonesia won only 1. If a member does not respect a WTO´s decision, it can suffer different sanctions.