The United States of America (USA) is the second most active user of trade remedies, and Indonesian products have been the subject of a considerable number of USA trade remedy investigations, mostly involving antidumping (AD) and countervailing duties (CVD). Some twenty USA AD and CVD orders are outstanding against Indonesian products, and four were issued in 2021 alone. The orders remain in place indefinitely, and at least one currently in effect was entered in the last century. And the duties charged can be prohibitively high – as much as three figures.
To support the trade defence authorities and private sector in responding more effectively to trade remedy investigations initiated by the USA, the Directorate of Trade Defence (DPP) of the Ministry of Trade, with assistance from ARISE+ Indonesia, held a one-day capacity strengthening workshop on Thursday (07/07/2022).
Speaking on behalf of the Director of Trade Defence, Ms Pradnyawati, the former Director of Trade Defence, highlighted the importance of understanding the trade remedy laws, policies, practices, procedures, and investigation requirements to respond more effectively against trade remedy investigations initiated by trading partners.
According to Ms Pradnyawati, the USA is well known for its controversial methodology in calculating anti-dumping duties against foreign products called "zeroing", which has been repeatedly challenged at the WTO Dispute Settlement Body. The USA also has advanced anti-circumvention rules in its domestic legislation.
"Therefore, it will be very interesting to hear from our expert about his experiences in defending exporters' interest in various anti-dumping investigations and how Indonesia can learn from the USA regarding anti-circumvention rules," Ms Pradnyawati said.
She was also enthused that the Indonesian Anti-Dumping Committee (KADI) would have the opportunity to obtain insights on how the USA conducts its countervailing investigations that could be used as a benchmark for Indonesia to start its first countervailing proceedings shortly.
The workshop was delivered by Patrick Macrory, a Washington DC-based trade expert specialising in trade remedies. Mr Macrory is a partner of a boutique international law firm, Appleton Luff, with extensive experience advising and representing government institutions and private sector clients in various trade remedies cases.
Mr Macrory began by describing the USA AD and CVD laws, regulations, and procedures in detail. He then outlined ways in which Indonesian companies can most effectively defend cases. This requires much effort but may be necessary to protect access to the USA market. Mr Macrory explained that a critical factor is the need to cooperate with the investigating authorities. Failure to cooperate, e.g. by refusing to respond to questionnaires, or the inability to verify the information’s accuracy, will be punished at very high rates. Mr Macrory also discussed ways in which Indonesian exporters might adjust their selling and accounting practices that might lessen their chances of being hit with a case at all or at least result in a better outcome (e.g. a lower rate) if they are.
Almost 200 government officials, including KADI, the Safeguards Committee (KPPI), Center for Export Import Policy and Trade Remedy Security (Trade Policy Agency), the private sector, and academia, participated in the workshop in person or online.
One of the participants, Fuji Anrina, an Investigation and Trade Defence Analyst in the Directorate of Trade Defence, said that the workshop was fascinating and essential in keeping abreast with the international trade remedy laws, policies, and procedures.
"The training was beneficial to equip us better in handling potential allegations in the coming years, especially from the USA," Fuji said.
ARISE+ Indonesia, in collaboration with the DPP, has organised several trade remedies workshops. The USA workshop is the fourth (after India, Turkiye, and Australia) in a series of workshops to strengthen capacity in responding effectively to third-party investigations. The fifth and final workshop will cover responding effectively to the EU trade investigations.
