Taiwan has won an import duty dispute against Indonesia in a ruling by the World Trade Organization (WTO) Appellate Body that will benefit Taiwan's steel and iron industries and protect overseas market opportunities, the Executive Yuan's Office of Trade Negotiations said Thursday.
The case was initially brought to the WTO by Taiwan's government and industry groups after Indonesia adopted a specific duty on imports of galvalume—flat-rolled iron or steel products—on July 22, 2014, leading to significant declines in the value of Taiwan's iron and steel exports to Indonesia and the effective loss of that market for Taiwanese firms, the office said.
Though Taiwan won the original case on August 18, 2017, Indonesia filed an appeal with the WTO Appellate Body on September 28 expressing dissatisfaction with the decision. The WTO again sided with Taiwan this week by handing down a final ruling declaring Indonesia's import duty measures to be in violation of the global trade body's rules. The ruling gives Taiwan the right to demand the duty be dropped or amended.
In its findings announced Wednesday, the appeal panel upheld the original ruling that Indonesia applied a higher import duty on steel and iron products from certain members of the WTO only (30-some countries including Taiwan, Vietnam, South Korea and Japan), thus contravening the WTO's "most-favored nation" principle under which all members are to be accorded equal treatment. Indonesia must accordingly eliminate or modify the import duty measures referenced in this case.
Following this week's victory, Taiwan will follow the WTO's supervision procedures closely to ensure Indonesia abides by the terms of the final ruling and that Taiwan's business interests are safely guarded, the office said.