Vision Group Report: Invigorating the Indonesia-EU Partnership

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72 1. INTRODUCTION The TBT Agreement, negotiated during the Uruguay Round, is an integral part of the WTO legal framework. Key principles underlying the TBT Agreement are (1) non discrimination; (2) proportionality – measures should not be more trade restrictive than necessary to achieve the objectives pursued; (3) harmonisation through the use of relevant international standards; and (4) transparency, notably through an obligation to notify draft technical regulations and conformity assessment procedures to the TBT Committee at an early stage and take account of comments from other WTO members. This means that technical standards should be aligned with international standards and should not impose unnecessary burdens for traders. Technical standards should not be used as a barrier to trade. Legitimate use of technical standards include: national security requirements; the prevention of deceptive practices; protection of human health or safety, animal or plant life or health or the environment. In assessing such risks, relevant elements of consideration are, inter alia: available scientific and technical information related processing technology or intended end-uses of products. 2. EU’S POLICY Technical requirements arise through all sectors of the economy. Their impact on trade arises through the costs of (1) adjusting products and production facilities to comply with differing requirements in different markets and (2) demonstrating compliance with these requirements. The impact on trade of technical requirements can be very significant and at times excessive. The EU takes a risk-based approach to its procedures to assess conformity with its requirements. In many sectors deemed of low-risk, the EU offers the option of a Supplier’s Declaration of conformity. The EU believes that mandating certification for low-risk products may lead to disproportionately burdensome obligations on economic operators. A central EU objective in the TBT field is to facilitate exports by EU manufacturers by reducing technical barriers which unnecessarily restrict trade in world markets. The EU also promotes greater harmonisation of technical regulations, standards and conformity assessment procedures. In the EU, standardisation is a voluntary process of developing technical specifications based on consensus among all interested parties (industry including Small and Medium-sized Enterprises, consumers, trade unions, environmental Non Governmental Organisations, public authorities, etc). Overall, the EU strives to develop a better regulatory environment for businesses. This initiative aims at simplifying existing regulations, reducing administrative burdens and using impact assessments and public consultations when drafting new laws and regulations. 3. INDONESIA’S POLICY X TECHNICAL BARRIERS TO TRADE (TBT) Standardisation is a supporting element of TBT that has an important role in optimising the utilisation of resources in development activities in Indonesia. Government Regulation No. 102 of 2000 regarding National Standardisation sets out the National Standardisation System (SSN), which is coordinated by the National Standardisation Agency (BSN) assisted by the technical Ministries in implementation.
The implementation of National Indonesian Standards (SNI) is mostly voluntary, meaning that the activities and products that do not meet the provisions of the SNI are not prohibited for trade. Thus, to ensure the acceptance and widespread utilisation of SNI, the application of norms of openness to all stakeholders and consistent with the development of international standards is a very important factor. However, for the purposes of protecting the consumer health and safety, national security and environment conservation, the Government can impose certain mandatory SNI. The enforcement of mandatory SNI is done through the issuance of technical regulations by government institutions or agencies which are authorised to regulate the activities and the circulation of products. In this case, the activities and products that do not meet the provisions of the SNI are prohibited from being traded. This provision is universally applied both to products manufactured domestically and imported products. 4. COOPERATION The EU pursues a range of bilateral and regional initiatives aiming to reduce TBTs. These initiatives include regulatory cooperation (to make regulatory systems more compatible); mutual recognition agreements (to eliminate costs arising from unnecessary duplication of technical and / or certification requirements); and the provision of technical assistance for developing countries. The EU is continuously supporting Indonesia in upgrading its conformity assessment and testing framework with a view of upgrading the export quality infrastructure in selected sectors. This support has been ongoing since 2005 under the Trade Support Programmes I and II. 5. MORE INFORMATION http://ec.europa.eu/enterprise/tbt/ http://www.wto.org/english/tratop_e/tbt_e/tbt_e.htm http://www.bsn.go.id 73
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Invigorating The Indonesia-EU Partn
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Abbreviations ACP Africa, Caribbean
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SUMMARY OF THE TERMS OF REFERENCE F
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CONCLUSIONS AND RECOMMENDATIONS 7
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often be accentuated by the combina
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20. Furthermore, in order to increa
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Relations between Indonesia and the
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eaching almost 7% in the last quart
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The existing EU and Indonesia allia
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Architecture of the CEPA 20 4 The V
Page 24 and 25: Market Access in Goods 22 5
Page 26 and 27: 24 Members have an effective opport
Page 28 and 29: Services are of increasing importan
Page 30 and 31: manufacturing and services (banking
Page 32 and 33: trade will bring to bear considerab
Page 34 and 35: poor management 5 . As a result the
Page 36 and 37: Competition policy is a necessary m
Page 38 and 39: increasingly demanding “environme
Page 40 and 41: 38 14 Communication strategy
Page 43 and 44: PRODUCT SECTORS OF SPECIAL IMPORTAN
Page 45 and 46: are concerns in Indonesia over poss
Page 47 and 48: nature of complex and fairly aggreg
Page 49 and 50: to exploit potentially beneficial c
Page 51 and 52: In the political cooperation area,
Page 55 and 56: BACKGROUND NOTES 53
Page 57 and 58: 2. DEVELOPMENTS Even though the tra
Page 59 and 60: 1. to complete its ambitious negoti
Page 61 and 62: Data collected from an investment s
Page 63 and 64: direct recourse to international ar
Page 65 and 66: 2.2. EU Member States EU Member Sta
Page 67 and 68: - Component 2 (implemented by UNICE
Page 69 and 70: 7. Indonesia to improve the investm
Page 71 and 72: Indonesia is the largest timber exp
Page 73: 3. TECHNICAL COOPERATION The REACH
Page 77 and 78: Cooperation and coordination betwee
Page 79 and 80: The proposal also puts forward a ne
Page 81 and 82: The EU’s objectives are to secure
Page 84 and 85: 82 1. INTRODUCTION Indonesia and th
Page 86 and 87: In the last decade, the expansion o
Page 88 and 89: Indonesia’s automotives industry
Page 90 and 91: 88 Rapidly expanding services secto
Page 92 and 93: There is remarkable scope for coope
Page 94 and 95: In Indonesia the processed foods in
Page 96 and 97: Electronics is Indonesia’s larges
Page 98 and 99: One of the fastest growing segments
Page 100 and 101: The textile, clothing and footwear
Page 102 and 103: 100
Page 104: Delegation of the European Union In
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Vision Group Report: Invigorating the Indonesia-EU Partnership

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