The US beef industry has had some big wins in recent months, in and around the Pacific Rim, with gains in China, Korea and other countries. This week, it had another win, as the World Trade Organization ruled in favor of the US in a dispute with Indonesia over its complex and opaque import requirements for beef and beef products. All 18 of Indonesia’s import measures contested by the US were found by the WTO to be inconsistent with the nation’s trade obligations. Thad Lively, senior vice president of trade access for the US Meat Export Federation, says he expects this ruling to open up considerable opportunity in the region.
“This is an important win for the US and this is one of those cases that was really well suited to take to the WTO, because Indonesia has in place a number of import restrictions that are pretty clearly inconsistent with what the rules of the WTO say.”
Lively says this situation was primarily driven by the fact that Indonesia had policy at times to pursue self-sufficiency in beef production. The reality of that happening is very unlikely and that is becoming increasingly apparent. Lively says this mediation comes at a good time when Indonesia is making considerations on how to meet its consumption needs. Currently, Indonesia is the ninth largest export destination for the US in terms of volume; fifteenth by value. With these restrictions now lifted, Lively says he is excited about the opportunities ahead.
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