GENEVA: The United States has asked the World Trade Organization to let it impose sanctions on Indonesia after winning a trade dispute that it said cost US business up to $350 million in 2017, a US filing published by the WTO showed on Monday.
The United States and New Zealand both won WTO rulings last year against Indonesian import restrictions on food, plants and animal products, including apples, grapes, potatoes, onions, flowers, juice, dried fruit, cattle, chicken and beef.
Indonesia also lost an appeal.
The latest US filing said Indonesia had not complied with the ruling, so Washington was seeking annual sanctions to compensate for the damage done to US interests.
“Based on a preliminary analysis of available data for certain products, this level is provisionally estimated at up to approximately $350 million for 2017,” it said.
“The United States will update this figure annually, as Indonesia’s economy continues to expand.
Indonesia is still studying the US move to seek sanctions, said Oke Nurwan, trade ministry’s director general of foreign trade, adding that authorities believe Jakarta had complied with the WTO panel decision. He said rules on Indonesian food imports had already been revised.
The process of seeking compensation often take years, and Indonesia is likely to contest the size of any potential sanctions.
There was no immediate sign of a similar sanctions request from New Zealand, which said last year Indonesia’s restrictions were estimated to have cost New Zealand beef sector up to NZ$1 billion. ($673 million)
Indonesia has been lobbying senior US officials to keep the Southeast Asian nation on a list of countries that receive special trade terms under the Generalized System of Preferences, a facility that gives reduced tariffs to about $2 billion of Indonesian exports.
The US Trade Representative’s Office in April said it was reviewing Indonesia’s eligibility for GSP in light of Jakarta’s imposition of a wide array of trade and investment barriers that create serious negative effects on US commerce.
Indonesia’s trade minister Enggartiasto Lukita in July said he will advise Washington that Indonesia will remove trade barriers for US apples following a WTO ruling as part of lobbying for GSP.
Indonesia scrapped a quota system for beef imports in 2016.
US seeks $350 million annual sanctions in Indonesia trade dispute
US seeks $350 million annual sanctions in Indonesia trade dispute
- The latest US filing said Indonesia had not complied with the ruling
- The process of seeking compensation often take years, and Indonesia is likely to contest the size of any potential sanctions
Closing Bell: Saudi equities continue 4-day upward trend
RIYADH: Saudi equities closed higher on Wednesday, with the Tadawul All Share Index rising 51.52 points, or 0.47 percent, to finish at 10,945.15.
Trading activity was robust, with 373.9 million shares exchanged and total turnover reaching SR6.81 billion.
The MT30 Index also ended the session in positive territory, advancing 11.93 points, or 0.82 percent, to 1,472.82, while the Nomu Parallel Market Index declined 116.82 points, or 0.49 percent, to 23,551.47, reflecting continued volatility in the parallel market.
The main market saw 90 gainers against 171 decliners, indicating selective buying.
On the upside, Al Kathiri Holding Co. led gainers, closing at SR2.18, up SR0.12, or 5.83 percent. Wafrah for Industry and Development Co. advanced to SR23, gaining SR0.99, or 4.5 percent, while Al Ramz Real Estate Co. rose 4.35 percent to close at SR60.
SABIC Agri-Nutrients Co. added 4.21 percent to SR118.70, and Al Jouf Agricultural Development Co. climbed 4.12 percent to SR45.
Meanwhile, losses were led by Saudi Industrial Export Co., which fell 9.73 percent to SR2.69. United Cooperative Assurance Co. declined 5.08 percent to SR3.74, while Thimar Development Holding Co. dropped 4.54 percent to SR35.30.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. retreated 4.15 percent to SR48.50, and Gulf Union Alahlia Cooperative Insurance Co. slipped 3.96 percent to SR10.44.
On the announcement front, Saudi National Bank announced its intention to issue US dollar-denominated Additional Tier 1 capital notes under its existing international capital programe, with the final size and terms to be determined subject to market conditions and regulatory approvals.
The planned issuance aims to strengthen Tier 1 capital and support the bank’s broader financial and strategic objectives.
The stock closed at SR42.70, gaining SR0.70, or 1.67 percent, reflecting positive investor reaction to the capital management move.
Separately, Almasane Alkobra Mining Co. said its board approved the establishment of a wholly owned simplified joint stock company to provide drilling, exploration and related support services, with a share capital of SR100 million and headquarters in Najran, subject to regulatory approvals.
The new subsidiary aligns with the company’s strategy to enhance operational efficiency and expand its role in the Kingdom’s mining sector.
Shares of Almasane Alkobra Mining closed at SR98.70, up SR0.30, or 0.3 percent, by the end of the session.
