In comments jointly filed with the Office of the U.S. Trade Representatives this week, the National Chicken Council, USA Poultry & Egg Export Council, and National Turkey Federation predicted that, if U.S. chicken, turkey, and other poultry products had fair and World Trade Organization (WTO) consistent access to the Indonesia market, U.S. poultry exports would approach $50 million on an annual basis. In 2012 total U.S. poultry exports to Indonesia were $358,000.
Exports are minimal because Indonesia maintains administratively burdensome and trade-restrictive licensing requirements that are inconsistent with Indonesia’s WTO obligations. U.S. poultry exporters face a non-transparent and irrationally applied set of measures if they attempt to participate in the market. To make importation even more difficult, if not impossible, Indonesia has imposed a very small annual import quota that currently permits only whole turkey and whole ducks. For all other poultry the quota is essentially zero.
With 248 million consumers and a growing middle class, the factors are favorable for increased poultry consumption. Broiler consumption is about 6.2 kilograms (13.7 pounds) but would be much higher if Indonesia’s international trade policies and rules were consistent with WTO rules and obligations, the comments stated. Indonesia’s domestic poultry production is heavily dependent on imported feedstuffs and its infrastructure, needed to support a modern poultry industry, is severely lacking, the group noted.
The three organizations strongly urged USTR to invoke dispute settlement before the WTO so that access to the Indonesia market can become fair and will not continue to be in violation of Indonesia’s obligations with the WTO. The submitted comments are available here.
