VZCZCXRO3325
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #1224 2031039
ZNR UUUUU ZZH
R 221039Z JUL 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 2878
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 2576
RUEHBK/AMEMBASSY BANGKOK 8768
RUEHGP/AMEMBASSY SINGAPORE 6558

UNCLAS JAKARTA 001224 
 
SIPDIS 
 
SENSITIVE 
 
DEPT PASS TO USTR RKIRK, 
DEPT FOR EAP/MTS, EAP/RSP, EB/TPP, EB/TPP/BTA 
USTR FOR BWEISEL, KEHLERS 
TREASURY FOR IA-BAUKOL 
 
E.O. 12598: N/A 
TAGS: BEXP EINV ECON ETRD ID
SUBJECT: INDONESIA REQUESTS CONSULTATION ON TOBACCO ACT 
 
¶1. (SBU) SUMMARY:  On July 22, 2009, Embassy received official 
correspondence from Government of Indonesia (GOI) Minister of Trade 
Mari Pangestu addressed to United States Trade Representative (USTR) 
Ron Kirk.  The letter details GOI concerns over recently signed 
tobacco legislation and requests a meeting in Geneva to discuss the 
issue.  End Summary. 
 
¶2.  (SBU) Begin text: 
 
Minister of Trade of the Republic of Indonesia 
 
Jakarta, 17 July 2009 
Our ref No: 1043/M-DAG/7/2009 
 
His Excellency 
Ambassador Ron Kirk 
United States Trade Representative 
600 17th Street, N.W. 
Washington, DC 20508 
 
Dear Ambassador Kirk: 
 
I recently wrote to you to express my deep concerns regarding the 
ban on clove cigarettes contained in the Family Smoking Prevention 
and Tobacco Control Act (the Act"), which was signed into law on 22 
June 2009.  Section 907 of the Act bans all flavored cigarettes 
except menthol beginning 90 days after the Act is signed.  The 
Indonesian government has repeatedly communicated our steadfast view 
that Sec. 907 of the Act is inconsistent with the general principles 
of the World Trade Organization ("WTO") on non-discrimination as 
well as WTO Agreement on the Technical Barriers to Trade. 
 
On many occasions I have conveyed our view that the TBT Agreement 
obligates the United States to ensure that, in respect of its 
technical regulations, products imported from the territory of any 
WTO Member shall be accorded treatment no less favorable than that 
accorded to domestic like products and to like products originating 
in any other country.  The TBT Agreement also obligates the United 
States to ensure that its technical regulations are not more 
trade-restrictive than necessary, thereby creating unnecessary 
obstacles to international trade.  In that regard, the TBT Agreement 
requires that the United States take account of scientific and 
technical information, as well as the special development and trade 
needs of developing country Members, such as Indonesia. Similar 
obligations exist under the WTO Agreement on Sanitary and 
Phytosanitary Measures (SPS Agreement) and the General Agreement on 
Tariffs and Trade 1994. 
 
I regret that our efforts to secure an amendment to the Act that 
would correct the discriminatory treatment of clove cigarettes have 
not been successful.  Given the short window of time before clove 
cigarettes are banned from the U.S. market, I respectfully request 
consultations with the United States to discuss the issue.  I 
propose to hold the consultation in Geneva promptly at a mutually 
agreeable date. 
 
Please confirm at your earliest opportunity so that we can proceed 
with arrangements in Geneva. 
 
Thank you for your kind attention to this matter. 
 
Yours sincerely, 
Signed 
Mari Elka Pangestu 
 
CC: 
¶1. Ambassador of the Republic of Indonesia to USA, Washington DC; 
¶2. Ambassador of the Republic of Indonesia to the WTO, Geneva; 
¶3. Ambassador of the United States of America, Jakarta; 
¶4. Director General for International Trade Cooperation, MOT; 
¶5. Special Assistant to Minister of Trade for International 
Cooperation, MOT. 
 
End text. 
 
HUME