Hanoi (VNA) - The Indonesian Government has announced a temporary suspension of the ratification process for the Reciprocal Trade Agreement (ART) with the US, as Washington launches new Section 301 investigations into alleged unfair trade practices.
Edi Prio Pambudi, Deputy for Coordination of International Economic Cooperation at the Indonesian Coordinating Ministry for Economic Affairs, said on March 18 that Jakarta is prioritising its response to the investigations before considering any next steps on the ART.
The Section 301 probes, initiated by the Office of the United States Trade Representative (USTR) last week, cover around 60 trading partners, including Indonesia. The investigations focus on allegations of excess industrial capacity and inadequate enforcement of bans on goods produced with forced labour.
The move has weakened the legal basis of the ART, which was signed in Washington on February 19 and would impose a 19% tariff on Indonesian goods once ratified.
Indonesia is setting up a special task force to prepare data and legal arguments to challenge the US allegations./.
