Minister reports progress on GSP negotiations with US to Kalla

Minister reports progress on GSP negotiations with US to Kalla

Trade Minister Enggartiasto Lukita met with Vice President Jusuf Kalla on Friday to provide an update on negotiations with the United States government on the country’s Generalized System of Preferences (GSP) facility for Indonesia.

Enggartiasto said the US would give Indonesia a chance to enjoy the GSP facility, namely lower duties of up to zero percent for Indonesian products, but with the requirement to make consistent regulation adjustments.

“A number of regulations should change because of the World Trade Organization’s decision. We have made adjustments,” said Enggartiasto, after meeting with Vice President Jusuf Kalla at in Jakarta as quoted by kontan.co.id.
Enggartiasto said the US had revoked GPS facilities for two countries. He said the US was seeking deregulation on livestock and horticulture products.

He added that the US had also demanded that the Indonesian government tighten supervision of property right laws, particularly for American products.

Enggartiasto said Indonesia had complied with a number of demands made by the US government in trying to maintain the GSP facilities, including by issuing a regulation on the placement of data centers.

The US government has been reviewing 124 Indonesian export products since last year to decide whether they will still be eligible for the GSP import tariff cut.

In 2017, Indonesia’s surplus amounted to US$9.67 billion, 9.89 percent higher than the $8.84 billion surplus recorded in 2016. From 2013 to 2017, Indonesia’s surplus with the US had grown at a rate of 8.47 percent per year.

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