On May 8, 2014, both the United States and New Zealand filed a notification to the WTO to request consultations with the Government of the Republic of Indonesia on certain measures regarding the importation of horticultural, animals and animals products to Indonesia.

Earlier last year, the US and NZ already requested consultations with Indonesia. However, in the case with the NZ (DS466), no dispute panel was established and no withdrawal or mutually agreed solution was ever notified. With the case of the US (DS455), the panel was actually established but no action was taken after that. 

The measures at issue that are being contested by the US and the NZ amongst others, include:

·      Law of the Republic of Indonesia Number 7 of Year 2014 Concerning Trade

·      Law of the Republic of Indonesia Number 13 of Year 2010 Concerning Horticultural Products

·      Law of Republic of Indonesia Number 18 Year 2009 on Animal Husbandry and Animal Health

The US and NZ argues that the measures related to the products at issue violates WTO rules, namely because:

·      Indonesia imposes restrictions to trade on horticultural, animal and animal products

·      Maintains a non-automatic import licensing regime on the importation of the products at issue

·      Indonesia provides less favorable treatment to foreign producers

·      Indonesia imposes unreasonable and discriminatory pre-inspection requirements

·      Indonesia failed to notify and publish sufficient information with regards to its licensing regime

Consequently, the US and NZ argues that the measures at issue is inconsistent with:

·      Articles III:4, X:1, XI:1 GATT

·      Articles 4.2 of the Agricultural Agreement

·      Articles 1.2, 1.5, 1.6, 2.2, 3.2, 3.3, 5.1, and 5.2 of the Import Licensing Agreement

·      Articles 2.1 and 2.15 of the Agreement on Preshipment Inspection

Request for consultations marks the first step in resolving disputes between WTO members. However, if after 60 days, no mutually agreed solution could be reached through consultations, then the complaint has the right to request the panel to adjudicate over the issue.