--- On Sat, 6/26/10, TASNIM ILMIARDHI <tazbat...@yahoo.com> wrote:
From: TASNIM ILMIARDHI <tazbat...@yahoo.com>
Subject: [IndoLaw] Indonesia vs U.S. in the WTO dispute against the ban on
Cigarettes
To: indo...@yahoogroups.com
Date: Saturday, June 26, 2010, 6:40 PM
Indonesia vs U.S. in the WTO dispute against the ban on Cigarettes
http://tazbatlaw.blogspot.com/2010/06/indonesia-vs-us-in-wto-dispute-against.html
Indonesia has sued the United States (U.S.) to the World Trade Organization
(WTO) over U.S. policy prohibiting cigarettes. Indonesia officially has
requested formation of the Panel Session presented in the Dispute Settlement
Body (DSB) WTO, dated June 22, 2010 in Geneva Switzerland.
In the WTO's DSB meeting on June 22, 2010 in Geneva, the Delegation of
Indonesia informed the Assembly the reasons and legal basis of WTO rules
regarding the formation request to the DSB panel.
Indonesia requested that the Panel examined the offenses committed by the U.S.
against the provisions of Article III of GATT (General Agreement on Tariffs and
Trade) in 1994, the use of article XX of GATT 1994.
This is without any scientific evidence as well as non-fulfillment of
requirements set by a number of articles in the Technical Barriers to Trade /
TBT and Sanitary
and Phythosanitary / SPS.
Indonesia regard to restrictions imposed on cigarettes is a violation of
Article 2.2 of the WTO TBT Agreement (TBT Agreement) which leads to the form of
more trade restrictions to achieve health goals as mandated by the main purpose
of these U.S. laws.
It is also the problem of violations of the principle, because there have been
exceptions to discrimination which is also is a menthol-flavored cigarettes
(flavoroured) in the Act, while the scented clove cigarette prohibited.
Therefore, for the sake of national interests, Indonesia DSB bring this issue
to the WTO.
Case Chronology
RI-US dispute started from the publication of legislation in the United States
to prevent or reduce youth smoking, as enshrined in the 'Family Smoking
Prevention and Tobacco Control Act' which was published in June 2009 and
accepted September 2009.
According to U.S. prohibitions set forth in the Law on Tobacco Control
(Tobacco Control Act) and has been approved by the U.S. government, stating
that cigarettes or aromatics are considered more dangerous than cigarettes that
are not scented. As the government worried about clove cigarettes or
aromatic'll addictive for children under age.
This along with the many countries that have signed the Framework Convention on
Tobacco Control (FCTC), which are the auspices of WHO, including the United
States in this regard.
This regulation has been violated WTO rules which are discriminatory to exclude
from the ban on the sale of menthol cigarettes flavored cigarettes, including
clove cigarettes in the United States.
Director General of International Trade Cooperation of Trade Ministry Gusmardi
Bustami states Indonesia action to bring U.S. to WTO DSB is the final step
after various efforts made since the beginning is still in draft form and
discussed in the Act of Congress until enactment.
Indonesia has
expressed its interests in various forums at a senior level official bilateral
reached the level of both formal and informal Minister for more than 4 (four)
years, but to no avail.
"As a member of the WTO, the United States should carry out its international
obligations as contained in the Agreement on Technical Barriers to Trade and
the GATT 1994, to not discriminate against the trade," said Gusmardi.
In Section 907 from Family Smoking Prevention and Tobacco Control Act (Public
Law 111-31, 'The Act') has been ratified into law (Act) by a President Obama is
dated June 22, 2009.
This Act prohibits the sale of all cigarettes that contain aroma and flavor
(flavored cigarettes). including clove cigarettes in the United States in
addition to menthol and became effective on September 22, 2009.
And smoking menthol cigarettes is 'Like products' according to Article 2.1 of
the Agreement on Technical Barriers to Trade (TBT Agreement).
99% clove cigarettes sold in the United States is importing products mainly
from Indonesia. In contrast, almost all of menthol cigarettes being sold is the
result of U.S. domestic production.
Therefore, a ban on the import of cigarettes is a form of discriminatory
treatment and less favorable than menthol cigarette products. The main purpose
of the Act is to overcome the health problems associated with smoking is to
reduce cigarette consumption in young children.
However, the data showed 43 percent of U.S. youth menthol cigarettes and
consume about one fourth of the total cigarettes consumed in the U.S..
Conversely, clove cigarette consumption reached only less than one percent of
the total consumption of cigarettes in the U.S. (0.09%) and cigarette
consumption in young children (0.05%).
Given that the ban on flavored cigarettes are not valid on menthol cigarettes
are actually even greater level of consumption, the ban on clove
cigarette which is relatively very low level of consumption by both the young
and as a whole will be very ineffective to achieve the goals of the U.S. Act.
The restrictions imposed on cigarettes is a violation of Article 2.2 of the WTO
TBT Agreement (TBT Agreement) which leads to the form of more trade
restrictions to achieve health goals as mandated by the main objectives of the
U.S. law.
"This is a matter of principle, because there have been exceptions to
discrimination which is also menthol-flavored cigarettes (flavoroured) in the
Act as prohibited clove-flavored cigarette. Therefore, for the sake of national
interests, the Indonesian bring this issue to the WTO DSB," he explained.
Against U.S.
In such DSB meeting, the U.S. delegation submitted disappointment at the
actions of Indonesia to bring the U.S. to the DSB and is a premature thing.
"The U.S. asked Indonesia to reconsider its demand for the establishment of
these panels," said Gusmardi Bustami.
Although Gusmardi said, rejecting U.S. is a natural thing is common in the
Assembly DSB. This is because the parties disputed the U.S. has the power to
block them at the first opportunity in accordance with the provisions of the
WTO Dispute Settlement Understanding (DSU).
But at the next session of the United States does not have the right to refuse
again. Indonesia will continue to advance to the next stage, the request for
the establishment of the panel is a follow-up measures in the WTO trade dispute
settlement process.
Previously, Indonesia has submitted a request for RI-US consultations on March
7, 2010 in an effort to find solutions to the laws issued by the U.S..
On May 13, 2010, RI-USA has conducted formal consultations within the framework
of the WTO DSB, but the results are not achieved consensus. Use Weapon Against
Anti-Discrimination to the U.S..
B to B
Settlement
Meanwhile, Minister of Industry, MS Hidayat, hoping the case of an export ban
on cigarettes could be resolved by the U.S. business to business. The
government has so far not received reports about the lawsuit Indonesian
businessmen to the WTO in the case.
"They have not officially report to the government. So it is still disputed in
the corporation, I have not been able to report and they are likely to solve it
b to b. I think Sampoerna has chaired a team of lawyers to sue," said him.
Hidayat believes the ban is an American strategy to stop the export of
Indonesian clove.
"It's brand strategy to stop cigarette exports to us," he asserted.
However, Hidayat sure the effect of these restrictions are not so large
considering the rates that are not so big.
"The market share of clove cigarettes in the U.S. we are there but not a large
percentage, which many in Malaysia," he added.
U.S. prohibition is
stipulated in the Law on Tobacco Control (Tobacco Control Act) which was
approved by the U.S. government. Under the rules stated that the Tobacco
Control Act, or an aromatic clove cigarette is considered more dangerous than
cigarettes that are not scented. As the government worried about clove
cigarettes or aromatic'll addictive for children under age.
Indonesia has submitted a claim to the trade dispute settlement body of Dispute
Settlement Body (DSB) of WTO related ban on the sale of clove cigarettes (or
cigarettes aromatic) of U.S. government. (*)
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