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2003年6月WTO对印度尼西亚贸易政策审议-中国代表团的发言(英文)
                Statement of the Chinese Delegation
               at the WTO Trade Policy Review of Indonesia
                     June 27-30, 2003


Madam Chairperson,

  Thank you for giving me the floor. Firstly, my delegation would like to join the preceding members in welcoming the delegation from Indonesia. We would also like to thank the discussant for his precise and insightful observation on the trade policy of Indonesia.

  China and Indonesia have been enjoying the relationship of cooperation in various areas, and trade relationship constitutes one of the most important parts. The past few years witnessed the recovery of bilateral trade and rapid development in the relationship of economic cooperation. In 2002, the volume of bilateral trade increased by 17.9% to the amount of US $7.928 billion.

  Investment between the two countries has also reached to a relatively large scale. At present, Indonesia is the 20th largest source of investment to China, and investment to Indonesia by China also keeps a strong momentum of rapid development. At the same time, the economic cooperation, with the project-contract and labor cooperation as its core, has been continuously strengthened. Besides, Indonesia and China have been maintaining close and friendly cooperation in the ongoing consultations and negotiations over the establishment of China-ASEAN Free Trade Area, in which Indonesia plays a positive role.

  It is known to all that the economy of Indonesia was seriously affected by the “Asian Financial Crisis” in 1997. To extricate itself from the aftermath of the crisis and rejuvenate its economy, Indonesia carried out a thorough and profound reform with the help of IMF. Even though Indonesia encountered tremendous difficulty and challenges in the process of reform, it is encouraging for us to see that accomplishment has been made since the reform was taken. To date, the rupiah exchange rate has stabilized and economic growth rebounded. However, we also take note that the economic situation still remains fragile, as the Government faces formidable challenges to overcome the chronic economic problems of heavy debt, low foreign investment, and a weak banking system. What we must bear in minds is that Indonesia is now renewing its efforts for macroeconomic and structural reform, and China is of the belief that the recovery and development of Indonesian economy will eventually be resumed under further reform plan, and this will consequently contribute to regional economy as well as the global economy.

  Madam Chairperson, China welcomes Indonesia’s determination and practices of further liberalizing its trade regime, and commends the achievements it has made. However, China has particular concern over some of Indonesia’s trade policies, including:

  Tariff and other taxes. While Indonesia cut its average applied MFN rate of 9.5% to 7.2%, and measures has been taken to the effect that tariff peaks and tariff dispersion fells, it maintains high tariffs ranging from 60% to 170% for certain sectors, such as chemicals, fabricated metal products, and transport equipment. Besides, contrary to the appreciated policy changes in the automobile sector, tariffs on motorcycles remains high at 80%, and luxury sales taxes increased, too.

  Import restrictions. A new system of licensing procedure, special import licensing, has been introduced in 2002, which appears to increase the scope of import restriction. At the same time, non-automatic licenses, accompanied by exclusive import rights accorded to domestic producers of certain sensitive products, constitute another form of import controls.

  Trade in Services. Indonesia's GATS commitments do not in general cover cross-border supply, consumption abroad, and presence of natural persons, and the supply of these services by commercial presence is limited to joint operations/ventures involving a representative Indonesian office/Indonesian partner. Except for that, Economic Needs Test for is implemented in Indonesia which would constitute restrictions for employment of foreign labor.

  China is confident in the bright perspective of Indonesia’s economy, and will stand firmly with Indonesia for its structural reform, though it is facing great challenges and may be painstaking. China wishes that not only will the Trade Policy Review go on smoothly, the reform will, too, come to a satisfactory end in the near future.

  Thank you, Madam Chairperson.

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