Indonesia ready to face off with China at WTO over its ban on bauxite exports
The Joko Widodo lead Indonesian government affirms that bauxite export would be prohibited from June this year. It is prepared to cope with the repercussions, including handling World Trade Organization (WTO) concerns from other nations.
Bara Krishna Hasibuan, the Indonesian Trade Ministry's special staff for international trade agreements, said, "The government would not back down on the ban plan. As is known, China is Indonesia's largest export market for bauxite ore, meaning that both countries will likely go head-to-head in a WTO dispute settlement."
He added, "President Jokowi said he was ready for the consequences. The Trade Ministry is also prepared to deal with any WTO dispute."
However, prohibiting bauxite exports will significantly impact China, as bauxite ore exports to China account for roughly 90 per cent of Indonesia's total bauxite exports. Indonesian supplies are essential to many Chinese alumina refineries.
As a result, China is very likely to follow the European Union's lead and file a WTO dispute. The European Union complained to the World Trade Organization about Indonesia's decision to ban nickel exports. The WTO panel ruled in favour of the EU in the dispute in October 2022.
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Next articleUS crude and dried bauxite imports grow quarterly by 13% in 4Q2022; imports from Jamaica hike to 593,000 tonnes
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