INDONESIA - CERTAIN MEASURES AFFECTING THE
AUTOMOBILE INDUSTRY
Request for the Establishment of a Panel by the European Communities
The following communication, dated 12 May 1997, from the Permanent Delegation of the
European Commission to the Chairman of the Dispute Settlement Body, is circulated at the request
of that delegation.
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On3 October 1996, the European Communities requested consultations with Indonesia pursuant
to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU),
Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT), Article 8 of the Agreement
on Trade Related Investment Measures (TRIMs Agreement) and Articles 7 and 30 of the Agreement
on Subsidies and Countervailing Measures (SCM Agreement) with respect to certain measures affecting
the automobile industry (WT/DS54/1).
Pursuant to the above-mentioned request, consultations were held in Geneva on 6 November 1996
1996 and on 5 December 1996 with a view to reaching a mutually satisfactory solution. Unfortunately,
these consultations failed to settle the dispute.
The European Communities hereby request that a Panel be established at the next meeting of
the Dispute Settlement Body pursuant to Article 6 of the DSU, Article XXIII:2 of GATT, Article 8
of the TRIMs Agreement (to the extent that it incorporates by reference Article XXIII of GATT) and
Articles 7.4 and 30 of the SCM Agreement (to the extent that Article 30 incorporates by reference
Article XXIII of GATT).
The European Communities further request that the Dispute Settlement Body initiate the procedure
provided in Annex V of the SCM Agreement pursuant to point 2 of that Annex. The European
Communities reserve the right to put forward more specific suggestions as to the information which
should be sought under this procedure once the panel is established and the Government of Indonesia
has complied with the provisions of paragraph 1 of Annex V.
The measures concerned by this request are the following:
(a) import duty relief to parts and components used for the assembling in Indonesia of
motor vehicles, and parts and components thereof, which meet certain local content
requirements;
(b) exemption of import duty of parts and components used for the assembling in Indonesia
of “national motor vehicles” by “Pioneer companies”;