TEMPO.CO, Jakarta -Finance Minister Sri Mulyani Indrawati responded to Indonesia’s removal from the United States’ developing countries list eligible for special differential treatments (SDT).
She said that the decision only targets countervailing duties (CVD) rather than a generalized system of preference (GSP), which the media heavily reported on. Sri Mulyani further explained that the CVD facility only covers five commodity sectors.
“So, actually, this would not heavily affect our trade,” said the finance minister on Monday, February 24.
CVD is different from the Generalized System of Preferences (GSP). It is the duty imposed by the government of the importing country to balance the price of the same product made domestically, and even out the prices of foreign products based on export subsidies obtained from the originating countries.
Meanwhile, the GSP is a facility provided unilaterally by the U.S. to promote growth in developing countries.
As per February 10, 2020, the U.S. officially removed Indonesia and a number of other countries—including South Korea, Thailand, Singapore, and Vietnam—from the list of developing and least-developed countries. With this policy, Indonesia will no longer receive special differential treatment (SDT) available in the WTO Agreement on Subsidies and Countervailing Measures.
Meanwhile, during the visit to Indonesia’s Coordinating Ministry of Maritime Affairs and Investment, a United States trade Official assures that the United States will not revoke Indonesia’s GSP facility.
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