US Intends to Punish Indonesia by $350 Million Annual Sanctions

Forex News

Last year, the United States and New Zealand both won WTO rulings against Indonesian import restrictions on food, plants and animal products, including apples, grapes, potatoes, onions, flowers, juice, dried fruit, cattle, chicken and beef.

The US claims, that Indonesia had not complied with the ruling, so Washington was seeking annual sanctions to compensate for the damage done to US interests. So, the United States has asked the World Trade Organization to let it impose sanctions on Indonesia after winning a trade dispute that it said cost US business up to $350 million in 2017.

"Based on a preliminary analysis of available data for certain products, this level is provisionally estimated at up to approximately $350 million for 2017," a US filing published by the WTO says. "The United States will update this figure annually, as Indonesia's economy continues to expand."

Meanwhile, there was no immediate sign of a similar sanctions request from New Zealand, which said last year Indonesia's restrictions were estimated to have cost New Zealand beef sector up to NZ$1 billion ($673 million).