PRESS RELEASE
1. July 31, 2004 is a historic moment for WTO as it has reached a land mark “July Package” that has becoe a braktrough in the gobal trade arrangement. The July Package focuses on foUr main issues: agricultural products, manufacturing products, service and trade facility.
2. Indonesia welcomes the package as it is a pivotal move that will jumpstart the failed Doha Round of negotiation that was done in Cancun, Mexico in September 2003.
3. With agreement of the July Package the Doha Round can be restarted and furher negotiotion can be continued after WTO members take a short break in August.
4. For Indonesiat that becomes the chief coordinator of developing countries grouped under G-33 the July Package has several important meaning:
Because Indonesia since the last couple of years has been seking to include two important clauses: Special Products and Special Safeguard Mechanism (SP/SSM), and after fierce struggle the clauses have finally been accepted by members.
Ten% of Deminimis Level for smal and poor farmers of developing countries can be maintained. State owned company in developing countries who function as price stabilisator and supply guarantor
are given monopoly right.
Developing countries also succeed in reducing and lifting subsidy in the developed countries.
Export subsidy (export credit, export insurance, trasport etc) will be gradually lifted, Subsidized Food Aid will also be lifted exept those for non commercial and humanitarian purposes.
5. SP/SSM’s importance for Indonesia is to give protection for small farmers who mostly live before poverty line. With the introduction of SP/SSM imported agricultural product can be prevented so that the life of the farmers will improve.
6. Especially for industrial products, WTO members has agreed to discuss it in the framework of derbez text which was not agreed during the Cancun negotiation on condition that clauses that is disvantagous to the developing coutries will discussed after a break in August.
7. For service sector which is a very important sector in the economy, members have agreed to discuss it at the latest in May 2005. After that member shall commitment to gradually liberalize their market. That is a great opportunity for us.
8. Regarding trade facilities, members have agreed to discuss it on the basis of the agreed modality. With the agreement it is expected that the flow of goods among WTO member countries will improve.
9. The July Package Agreement will be brought to KTM VI in Hong Kong scheduled December 2005
Geneva, 2 August 2004
