Following WTO Ruling, Indonesia Says It may Seek Compensation from US

by Kathy Jones on  July 27, 2013 at 9:52 PM Medico Legal News   - G J E 4
Indonesia revealed that it may seek compensation from the United States after the World Trade Organization ruled that the pulling of clove cigarettes from market shelves was discriminatory.
 Following WTO Ruling, Indonesia Says It may Seek Compensation from US
Following WTO Ruling, Indonesia Says It may Seek Compensation from US

Indonesia's trade ministry said it had lost between $200 million and $300 million annually from the 2009 ban, aimed at helping prevent youths from taking up smoking.

The WTO found that the US had flouted trade rules in its health act -- under which cinnamon, coffee, grape and strawberry-flavoured cigarettes were also banned -- because it allowed menthol-laced tobacco to stay on the market.

The WTO found in favour of Indonesia's claims that allowing domestically-made menthol cigarettes and not its clove-laced cigarettes was discriminatory.

"We will seek compensation. The procedure under the WTO is if one country ignores the recommendation suggested by the dispute panel, compensation should be discussed," trade ministry director general of international trade cooperation Iman Pambagyo told AFP.

"It's baffling how the US, which is always demanding other countries to abide by WTO disciplines and regulations, is now unable to correct its policy, which is clearly in violation of WTO provisions," Pambagyo said in a statement.

Pambagyo said the ministry had not decided how much compensation it would seek, but that it would reflect losses, estimated at between $200 million and $300 million annually.

Indonesia claimed that the livelihoods of over six million citizens depended directly or indirectly on the production of clove-laced tobacco.

While the WTO ruled the ban was discriminatory, it threw out Indonesia's suggestion that a ban on flavoured tobacco in general was unnecessary, calling the US effort to curb youth smoking "legitimate".

Source: AFP

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
Notify me when reply is posted I agree to the terms and conditions

You May Also Like

View All