WTO Favors Indonesia in Dispute with USA Over Clove Cigarette

London (ANTARA) - The Dispute Settlement Body (DSB) of the World Trade Organization (WTO) in its special session on Friday decided in favor of Indonesia, which demands compensation from the United States over the clove cigarette dispute. The WTO also allowed Indonesia to take retaliatory measures against the United States for the latter's failure to comply with the WTO ruling earlier, Mardhiah Ridha Farid, an economic secretary of PTRI in Geneva told Antara news agency on Friday. The diplomat said the DSB had formed an arbitration to determine the value of compensation to be paid by the United States to Indonesia based on the WTO Dispute Settlement Understanding (DSU). Indonesia has demanded compensation as the United States failed to implement a decision of DSB on the clove cigarette case, which was won by Indonesia on April 24 in 2012. DSB ruled the US Federal Food, Drugs and Cosmetic Act, in particular the Section 907 (a)(1)(A) as discriminative violating a WTO agreement on Technical Barrier to Trade, and it is not in line with the US obligation as a WTO member. At the meeting Indonesia said the DSB decision is crucial for the survival of small industries with impact on tobacco growers in the country. Indonesia demanded the United States to take a concrete step toward implementation of the DSB's decision. The DSB ruled the United States was to implement the decision in 15 months of Reasonable Period of Time , already past by July 24 in 2013. The US non compliance has resulted in big losses of more than US$160 million to Indonesia in three years since the Federal Food, Drugs and Cosmetic Act came into effect in 2009. (*)