INDONESIA - CERTAIN MEASURES AFFECTING THE
AUTOMOBILE INDUSTRY
Request for the Establishment of a Panel by Japan
The following communication, dated 17 April 1997, from the Permanent Mission of Japan
to the Chairman of the Dispute Settlement Body, is circulated at the request of that delegation.
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On 4 October 1996, the Government of Japan ("GOJ") requested consultations with the
Government of Indonesia ("GOI") pursuant to Article 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs
and Trade 1994 ("GATT 1994") and Article 8 of the Agreement on Trade-Related Investment
Measures (the "TRIMs Agreement") regarding certain measures affecting the automotive industry
("the Measures") of Indonesia (i.e. so-called National Car Program). (WT/DS55/1)
On 29 November 1996, the GOJ requested additional consultations with the GOI regarding
the Measures under Articles 1 and 4 of the DSU, Article XXII:1 of GATT 1994 and Articles 7 and
30 of the Agreement on Subsidies and Countervailing Measures (the "SCM Agreement").
(WT/DS64/1)
On 5 November and 3 December 1996, the GOJ and the GOI held in Geneva the consultations
requested on 4 October 1996. On 3 December 1996 at the same venue, both Governments held the
consultations requested on 29 November 1996. Unfortunately, the consultations failed to settle the
dispute on this matter.
The GOJ hereby requests that a panel be established at the next meeting of the Dispute
Settlement Body ("DSB") pursuant to Article XXIII:2 of GATT 1994, Articles 4.7 and 6.1 of the
DSU, Article 8 of the TRIMs Agreement and Article 30 of the SCM Agreement, with a standard
terms of reference provided for in Article 7.1 of the DSU.
Measures at Issue
The measures were introduced by the GOI on 19 February 1996 by promulgating its
Presidential Decree No. 2 and all of the implementing regulations and decrees (e.g. Government
Regulation No. 20/1996, Decree of the Minister of Industry and Trade No. 31/MPP/SK/2/1996,
Decree of the Minister of Finance No. 82/KMK.01/1996) and modified on 4 June through its
Presidential Decree No. 42 and all of the implementing regulations and decrees (e.g. Government
Regulation No. 36/1996, Decree of the Minister of Industry and Trade No. 142/MPP/KEP/6/1996
and Decree of the Minister of Finance No. 404/KMK.01/1996).