Hanoi (VNS/VNA) - Vietnam had won athree-year dispute with Indonesia regarding safeguards on certain iron andsteel products, according to the Trade Remedies Authority of Vietnam.
The World Trade Organisation (WTO) late lastweek announced the agreement of Vietnam, Taiwan, Penghu, Kinmen and Matsu, onthe one hand, and Indonesia, on the other, that Indonesia would have toimplement the recommendations and rulings of the Dispute Settlement Body (DSB)regarding safeguards on certain iron and steel products by March 27, 2019.
This means Indonesia will have seven months fromthe date of adoption of DSB’s recommendations and rulings.
On August 27, 2018, the DSB adopted theAppellate Body report which found the duties applied by Indonesia on imports ofgalvalume were not a safeguard measure subject to WTO safeguard disciplines.
The report also found that Indonesia’s specificduty on imports of galvalume was inconsistent with Article I:1 of the GeneralAgreement on Tariffs and Trade (GATT) 1994.
On October 11, 2018, Indonesia informed the DSBthat it required a reasonable period of time to comply with the DSB’srecommendations and rulings because it was impracticable for Indonesia to do soimmediately.
The dispute was initiated on June 1, 2015 when Vietnamrequested consultations with Indonesia regarding a safeguard measure on importsof certain flat-rolled iron and steel products from July 22, 2014.
The safeguard measure consisted a specific dutyapplied from July 2014 and reduced from 4,998,784 Rp (345 USD) per tonne to 3,629,538Rp per tonne.
With the DSB’s ruling, Indonesia must stop theapplication of specific duties as a safeguard measure on flat-rolled ironproducts and non-alloy steel from Vietnam.
According to the Trade Remedies Authority of Vietnam,more than 60 percent of Indonesia’s flat-rolled iron products and non-alloysteel came from Vietnam.
Iron and steel are major export products from Vietnamto Indonesia. Customs statistics showed that Vietnam exported 612,700 tonnes toIndonesia in 2017 at an average price of 731.3 USD per tonne.
The authority said the decision was important toVietnamese firms because it would help them cope with trade defense mechanismsapplied by importing countries.-VNS/VNA
VNA