YOGYAKARTA – Indonesia continues to struggle and support the continuation of the Doha Development Agenda (DDA) with the interest in the sector of special products (SP) and special safeguard mechanism (SSM) or a particular security mechanism as well as increasing market access that takes national interest into account, especially in trade sector. To achieve this, Indonesia adopted alliance diplomacy strategy by joining the G-33, Cairns Group and G-20. SP and SSM are the result of the lobbies done by developing countries to address imbalance in WTO agreement, which has significance to the implementation of special and differential treatment clauses. "Particularly in the trade sector, Indonesia still takes the national interest into account to support the continuation of this DDA," said researcher of Center for World Trade Studies UGM, Angga Kusumo H., in the monthly discussion held at the Center in Unit III of UGM Library building, 3rd floor, on Friday (19/11).
Furthermore, Angga added that in the DDA, agricultural sector is an important and sensitive issue because two thirds of the world economy, especially developing countries, comprises agricultural sector. Meanwhile, the potential agricultural market has so far emerged among developing countries. "This can not be separated from other aspects of development, such as the development of rural areas and food resilience," he added.
Agreement on Agriculture (AoA) is an agreement to liberalize trade in agricultural commodities by cutting tariffs, subsidies, and market opening which came into force on January 1, 1995. Article 20 of AoA states that member countries agreed to resume negotiations as well as evaluate the implementation of the agricultural sector post-Uruguay Round in early 2000. "There are three pillars that distort trade, i.e, domestic subsidies, export subsidies and market access," he said.
Indonesia is still fighting for the concept of SP and SSM in order to become part of the AoA. This continues to be done on consideration that the concept will be a "safety net" for Indonesia and other developing countries. Some products or commodities that are included in the SP are rice, soybeans, corn, and sugar.
On total distorting reduction, Indonesia’s trade support (OTDS) is similar to that of G-20, which agrees with the deduction of 80% in the band (a), 75% in band (b), and 70% in band (c). On the other hand, Indonesia also agrees with the elimination of export subsidies by 2013 for developed countries and 2016 for developing countries. "Indonesia also agreed to the elimination of export subsidies by 2013 for developed countries and 2016 for developing countries," Angga said.
In the discussion, Angga admitted that this agricultural is a high-level issue, especially after the emergence of alliances, namely the G-33, G-20, ACP, Cairns Group, EU and G-10 groups with different interests. This is seen as able to create another political implication because it creates momentum of diplomacy at other negotiating tables. "In addition, there would be a greater potential loss due to the deal that has not materialized," he said.