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Cablegate: Demarche Delivered: Indonesia Considers U.S.-Ec Taft Goods

VZCZCXRO9357
RR RUEHAG RUEHAP RUEHCHI RUEHCN RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ
RUEHMA RUEHMR RUEHPA RUEHPB RUEHRN
DE RUEHJA #0396 0590443
ZNR UUUUU ZZH
R 280443Z FEB 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8120
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 2458
RUEHBK/AMEMBASSY BANGKOK 8346
RUEHGP/AMEMBASSY SINGAPORE 6275
RUEHBS/USEU BRUSSELS
RUEHGV/USMISSION GENEVA 7735

UNCLAS JAKARTA 000396

SIPDIS

SINGAPORE FOR SUSAN BAKER

SIPDIS
SENSITIVE

DEPT PASS TO USTR SCHWAB
DEPT FOR EAP/MTS, EAP/IPE, EB/TPP, EB/TPP/BTA
COMMERCE FOR JKELLY AND EBRZYTWA
GENEVA PASS TO USTR
USTR FOR BNORTON AND JWEISS
USTR FOR BWEISEL AND KELHERS
TREASURY FOR IA-BAUKOL
EEB FOR ASCHEIBE

E.O. 12598: N/A
TAGS: ECON ETRD WTO ID
SUBJECT: DEMARCHE DELIVERED: INDONESIA CONSIDERS U.S.-EC TAFT GOODS
PROPOSAL

REF: STATE 12905

1. (SBU) SUMMARY: Embassy Jakarta and the European Commission (EC)
jointly delivered reftel demarche to Mr. Ansari Bukhari, Director
General of Textiles, Metal and Multifarious Industries, Ministry of
Industry. He had not seen the joint proposal yet, so we gave him a
copy and reviewed the main points. Bukhari said that the Government
of Indonesia (GOI) agreed "in principle" to streamlining and
standardizing labeling but would need to study the proposal more
closely before committing to publicly co-sponsor or support it. End
Summary.

2. (SBU) Bukhari explained that the GOI was in process of preparing
new legislation on labeling requirements driven by concerns over
consumer protection and controlling illegal transshipments. He said
that if the Taft Goods proposal simplifies labeling, Indonesia would
consider supporting it. Bukhari expressed reservations though on
supporting any measure that while ostensible streamlining
requirements would actually complicate them. He added "Indonesia
has had bad experiences" with regulations that in effect become new
technical barriers to trade, especially for small businesses. He
mentioned specific concerns on requirements relating to textile
content (which could become an issue as the proposal allows for
fiber content.)

3. (SBU) Bukhari explained that that Indonesian industry have so
far not complained over labeling requirements on their exports, but
saw the advantage of reduced cost through harmonized labeling
requirements. He promised to study the proposal and share it with
his intra-ministerial colleagues and advise us if the GOI has any
specific objections.

HUME

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