December 30, 2014

Brazil's case against Indonesia at WTO gathers pace

A case filed by Brazil against Indonesia at the World Trade Organisation (WTO) over restrictions on chicken imports has started to gather steam.

In a meeting held last week, the WTO finalised procedures for the formation of a Disputes' Panel against Indonesia, which Brazil has accused of violating WTO rules by passing laws that made importation of chicken difficult.

Brazilian officials cited "an inconsistent import ban on chicken cuts, marketing conditions stricter on imported products compared to locally produced products and a delay to the start of negotiations on a sanitary agreement with Brazil, without reasonable justification". 

The South American country considers Indonesia--with a population of more than 230 million people, low poultry production and an annual per capita consumption of about nine pounds--as a potentially huge market for Brazilian products.

Brazil has submitted over 360 questions, in addition to those arising from the replies given by Indonesia.

It raised issues related to Indonesia's trade policy on poultry trade, health certification, and other legal questions.

The WTO litigation began in December last year. Brazil formalised the procedure at the WTO only last October 16.