
The US, which is yet to bring its controversial 8216;Byrd Amendment8217; in conformity with World Trade Organisation WTO regulations, has reached an agreement with Indonesia on the issue. Indonesia, together with 10 other countries including India, EU, Australia, Brazil, Canada, Chile and Japan had asked the US to repeal the Act as it went against the letter and spirit of the WTO law.
The 8216;continued dumping and subsidy offset Act8217;, popularly known as the Byrd Amendment, enacted by the US in 2000, directs the US government to distribute the collected anti-dumping and anti-subsidy duties to the US companies that brought the cases.
This gives an unfair edge to the US domestic companies and makes competition for exporting countries paying the anti-dumping duties stiffer.
Since the US was not taking any measures to change the amendment to make it WTO compliant despite the WTO declaring the amendment non-compliant in 2002, the complaining countries had warned that they would suspend tariff concessions and related obligations extended to the US.
Indonesia, however, seems to have changed its mind after bilateral discussions with the US.
According to the understanding reached between the two countries, Indonesia will not at this stage request authorisation from the WTO8217;s dispute settlement body DSB to suspend concessions or other obligations to the US.
If Indonesia at some future date decides to request DSB authorisation to suspend concessions or other obligations, it will provide the US advance notice and will consult it making such a request.