On March 18, 2015 New Zealand and the United States (US) request for the establishment of dispute settlement panel to examine Indonesia’s wide-ranging import restrictions on fruits and vegetables, animal products and other agricultural products.  These measures include a ban on poultry and certain meat products and Indonesia’s trade-restrictive import licensing regimes for horticultural products and animals and animal products. 

In 2014, US exports of affected horticultural products to Indonesia exceeded $122 million, including $50 million of apples and over $37 million of grapes; and US exports of affected animals and animal products totaled $63.2 million in 2014. 

Whereas New Zealand stated that in January 2015 their beef exports to Indonesia fell by over 95% in what was once one of the meat industry's key export markets worth over $180 million in trade per year.

New Zealand and US alleged that Indonesia appears to have acted inconsistently with its WTO obligations.  In particular, the provision under Article XI:1 of the General Agreement on Tariffs and Trade 1994 and Article 4.2 of the Agreement on Agriculture, which prohibit restrictions on the importation of goods, including those made effective through import licenses.

Indonesian regulations challenged by New Zealand and US are as follow:

· Regulation of the Ministry of Agriculture Number 86/Permentan/OT.140/8/2013 Concerning Import Recommendation of Horticulture Products;

· Regulation of the Minister of Trade Number 16/M-DAG/PER/4/2013 Concerning Provisions on Horticulture Product Import;

· Regulation of the Ministry of Trade Number 47/M-DAG/PER/8/2013 Concerning Amendment of Regulation of the Minister of Trade Number 16/MDAG/PER/4/2013 Concerning Import Provision of Horticulture Product;

· Regulation of the Ministry of Agriculture Number 139/Permentan/PD.410/12/2014 Concerning Importation of Carcass, Meat, and/or Its Derivatives into the Territory of the Republic of Indonesia as amended by Regulation of the Ministry of Agriculture Number 02/Permentan/PD.410/1/2015; and

· Regulation of the Minister of Trade Number 46/M-DAG/PER/8/2013 Concerning Animal and Animal Product Import and Export Provision (“MOT Regulation 46/2013”) as amended by Regulation of the Minister of Trade No. 57/M-DAG/PER/9/2013 and by Regulation of the Minister of Trade 17/M-DAG/PER/3/2014.