Indonesia – Comprehensive review of localization measures

This agenda item, jointly requested by the United States, the European Union and Japan, concerned localization (local content) measures across a range of sectors in Indonesia. As background, these measures had been raised at previous Committee meetings – some over the course of a decade – and Indonesia indicated at the last Committee meeting that it had commenced a comprehensive review of its localization measures. 

The delegations raising this agenda item emphasized their concern that Indonesia's measures were not merely facilitating investment, but rather required the use of local products contrary to Indonesia's WTO obligations. Understanding the delay caused by COVID-19 disruptions, the United States asked Indonesia to brief members on the progress made on the comprehensive review in the next (spring 2021) TRIMs Committee meeting. In response, Indonesia drew members' attention to its recent written communications, highlighting that the review of localization remains on-going and involves a number of ministries, with the timeframe for its conclusion remaining uncertain due to the COVID-19 pandemic.

Russia's measures on import substitution policy

This agenda item, jointly requested by the United States and the European Union, concerned Russian local content measures, including those directed at purchases by state-owned enterprises. Both the United States and the European Union expressed concern that Russia appeared to be expanding its local content measures, whilst also noting that Russia was yet to provide responses to questions from prior Committee meetings. The European Union understood that Russia was currently working on a comprehensive reform of its procurement rules for state-owned enterprises and urged Russia to ensure that these rules clearly differentiate between government procurement and the commercial activities of state-owned enterprises.

The United States expressed concern at the apparent expansion of Russia’s localization measures to direct private companies to give priority to Russian-sourced goods, services and works over imports, contrary to Russia's WTO obligations. In response, Russia maintained that its measures were aimed at strengthening Russian competitiveness and were consistent with its WTO obligations, whilst also stressing that the COVID-19 crisis had necessitated certain actions related to critical infrastructure to mitigate negative impacts.

Other matters

Mr Manuel Chacón (Colombia) was elected as the new chair of the Committee, to replace the preceding chair, Ms Tiziana Zugliano (Italy). In line with Article 6.2 of the TRIMS Agreement, Vanuatu and Myanmar submitted new notifications in relation to the publications in which TRIMs may be found. The Committee also passed by consensus its annual report to the Council for Trade in Goods.

Next steps

The next meeting of the TRIMs Committee is scheduled for 23 March 2021.