The World Trade Organization has called on developing nations, including
Indonesia, to remove trade barriers that would enable them to benefit from the
free flow of goods in the global market.
WTO deputy director-general
Valentine Rugwabiza said on Tuesday that developing nations can unlock trade
potential with emerging peers if they remove barriers.
Such nations also need to improve
the competitiveness of local industries to experience the most benefits from
free trade, she said in an interview in Jakarta.
She added that any form of trade
restriction would “send the wrong signal to investors.”
In Indonesia, many non-tariff
measures have been imposed on goods from China, following the gradual
implementation of the Asean-China free trade deal in 2010 that resulted in a
flood of imports from the world’s second-biggest economy.
Other restrictive measures
include developing standards for imported products through the Indonesian
National Standard (SNI) and a labeling system.
“[Non-tariff barriers] are not a
good way to protect [local] industry,” Rugwabiza said. Many developing nations
have kept their doors closed to other developing nations, she said, adding that
removing barriers among themselves would be an effective way to counter weaker
demand from the developed nations.
Non-tariff restrictions include
import duties, quotas, trade-related subsidies and trade defense measures.
She encouraged Indonesia’s
policymakers to improve the business climate by helping local businesses cut costs
and identify problems that hamper productivity. This could involve efforts to
improve infrastructure, providing incentives and boosting the quality of human
resources.
The WTO’s main mission is to
ensure trade flows in a smooth, predictable and free manner.
Muhamad Al Azhari
Business & Investment Opportunities
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