REPUBLIKA.CO.ID, JAKARTA - Indonesia is preparing to consult with Brazil over allegations of trade protection violations of frozen and processed chicken meat after Brazil reported Indonesia to the World Trade Organization (WTO).
"We have replied to the letter of the Brazilian government for a consultation. We are preparing answers," Director General of International Trade Cooperation of the Ministry of Trade, Bachrul Chairi, said on Friday.
He added that the government was preparing the answer to a complaint by the Brazilian government to the WTO regarding a restriction by the Indonesian government which was seen as posing difficulties to Brazil in exporting frozen and processed chicken meat to Indonesia.
"This matter is related to the 'halal' Islamic law principle based on the Department of Agriculture decree No.110. According to that ministerial decree, imported goods are subject to verification, including checking the method in which the chickens are slaughtered. Chicken should be slaughtered manually, not by a machine," he added.
Bachrul said Brazil accused Indonesia of exaggerating their concerns, with regard to the restriction, causing the Indonesian government to consider the necessity to seek a consultation session next December (2014).
"In the next meeting, we will give them clarifications on policies we are adopting and we hope they could understand our explanations so that they will not continue the matter to the Dispute Settlement Body of the WTO," the director general said.
Bachrul noted that there were special considerations that could be raised by Indonesia during the meeting, such as agreements on agriculture, license import agreements and pre-shipment inspection agreements.
The value of Brazil's exports has reached 7 billion USD per annum, with its main markets being Japan, Hong Kong, Singapore and China. Its exports to Indonesia stand at only about 45 thousand USD per year.
Indonesia, whose population is predominantly Muslim, has regulations that require slaughter houses to have halal certifications from the Indonesian Ulamas' Council (MUI). The halal label is required for countries seeking to export meat to Indonesia.
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