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Confusion Over Indonesia’s Duty And Quota To EUff

4 April 2005 Indonesia

Indonesia will most likely fail in its attempts to obtain a larger quota and a cut in import duty for its canned tuna exports to the European Union.

The reason was due to the country's failure to submit a prompt proposal, which was not submitted until March 31, although the EU had already offered plans in January to grant a trade concession to tsunami hit countries, chairman of the canned fish association Hendri Sutadinata said on Thursday.

He said they are very disappointed because the country seems to have failed to take advantage of that opportunity. Sri Lanka, which was not as badly hit as Indonesia by tsunami got a concession because they are serious in their attempts, Hendri said.

Marketing and Institution Director General at the Maritime and Fisheries Ministry Sumpenio Putro said he was not aware of that failure, adding that information he had said that the EU had approved Indonesia's request.

The EU allows Indonesia to export only up to 2,750 tons of canned tuna a year to that region with an import duty of 12 per cent. The import duty will be 24 per cent for any excess of the quota.

The maritime and fisheries ministry has asked the trade ministry to seek EU agreement to increase the quota to 15,000 tons with an import duty of zero.