U.S. Seeks Ruling in Indonesian Car Dispute

The United States is seeking a World Trade Organization dispute panel ruling on Indonesia’s national car policy. The request was placed on the agenda of the next meeting of the WTO’s Dispute Settlement Body only hours after it set up a three-member panel to consider complaints from the European Union and Japan on an Indonesian policy giving tax and import duty breaks to a car firm headed by a son of President Suharto. The three powers are arguing that Indonesia’s policy violates a range of WTO accords. Indonesia will be able to block the U.S. request at the coming DSB meeting June 25, as this will be the first time Washington has formally asked for a panel. The next time, the request will be approved by the DSB automatically. The case has wide implications for developing countries seeking to build their national industrial bases.