The Dispute Panel at the World Trade Organization (WTO) decided to win the Indonesian lawsuit against Australia which adopted the Anti-Dumping Entry Policy (BMAD) for A4 Copy Paper products from Indonesia (DS529).
"The victory over this dispute is very important, given its systemic impact on allegations of dumping from other countries. It is hoped that the Panel's decisions and recommendations will minimize similar allegations going forward," said Minister of Trade Agus Suparmanto through his statement in Jakarta, Thursday, December 5, 2019.
The decision was stated in the final report of the dispute over BMAD for A4 Copy Paper products from Indonesia, which was published by the WTO yesterday, Wednesday.
The dispute between Indonesia and Australia took place on September 1, 2017. The Trade Minister stressed that the WTO stated that Australia's policy of imposing BMAD on the A4 Copy Paper products from Indonesia violated Articles 2.2 and 18.104.22.168 of the WTO anti-dumping agreement.
Some provisions in the WTO anti-dumping agreement which are proven to be violated by Australia are Article 2.2. WTO anti-dumping provisions because they have constructed the normal value of A4 Indonesian coffee photo paper producers without first testing whether domestic sales prices can be compared properly with export sales prices.
Then Article 22.214.171.124 of the WTO's anti-dumping provisions because Australia refuses to use the actual producer accounting data even though the data meets the generally accepted accounting principles (GAAP) and reasonably reflects the costs associated with production.
Next, the first sentence of Article 2.2 of the WTO anti-dumping provisions is because Australia (a) has no basis for using pulp export prices from Brazil and South America to China and Korea, (b) does not take profits from the reference price of the pulp used.
Meanwhile, related to the Indonesian Government's claim against the finding of Particular Market Situation (PMS) in the Indonesian paper industry by the Australian Authority, the Panel ruled that the findings could not be proven to violate Article 2.2 of the WTO Anti-Dumping Agreement.
Nonetheless, the Panel decides, whether PMS exists or not, the Investigative Authority must still conduct proper comparison between domestic prices and export prices in determining the normal value as required by Article 2.2 of the Anti-Dumping Agreement.
Based on this decision, the Panel recommends that Australia conduct corrective actions by making adjustments to the calculation of the amount of margin dumping that has been set on the A4 Copy Paper Indonesia product since 20 April 2017.
On this final report, Agus revealed that the two countries also agreed not to appeal to the WTO Appellate Body. "This is in view of the development of the current condition of the AB (Appellate Body) of the WTO. Indonesia and Australia will then ensure the next stage, namely implementing the Panel's recommendations by Australia within a period that will be mutually agreed upon, Agus said.
Indrasari Director General of Foreign Trade Wisnu Wardhana also confirmed the WTO's decision to win the Indonesian lawsuit. "This victory is expected to lift the performance of Indonesia's paper exports to Australia. The value of paper exports decreased from US $ 34 million in 2016 to US $ 12 million in 2018 due to the imposition of BMAD by Australia of 12.6 percent to 38.6 percent," Wisnu said.
Furthermore, the Ministry of Trade will continue to resolve various trade barriers to Indonesia's exports abroad.