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INDONESIA

Indonesia counters WTO clove appeal by US

25 Jan 2012. Indonesia called on the World Trade Organisation to stick by its ruling critical of the United States ban on clove-flavoured (kretek) cigarettes in the face of a US appeal, according to Antara news wire.

“We forwarded our opinion that the [WTO] panel’s decision favouring Indonesia was already correct,” Gusmardi Bustomi, the Trade Ministry’s director general for international trade, told the news service.

Last autumn a WTO panel set up in response to a complaint of trade discrimination by Indonesia found the US ban on kretek was “inconsistent” because it did not also ban the sale of menthol-flavoured cigarettes. The panel rejected Indonesia’s contention US action against kretek was unnecessary, citing evidence a ban could reduce youth smoking.

On 5 Jan the US appealed the panel ruling, claiming in part that kretek and menthol are different products. The appeal will be reviewed by three members from the WTO Appellate Body, who are supposed to issue a decision within 90 days. The appellate decision will go to the WTO Dispute Settlement Body. (pi)

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