Acknowledged as a developed country, Indonesia is not happy. (Image via Media Edutama Indonesia)

No longer a developing country, will Indonesia still get the GSP?

Alfonsus Adi Putra
Market & Investment
Export Import
Feb 24, 2020
3099
Indonesian economics experts stated that the decision from the United States (U.S) to erase Indonesia’s name from the developing countries’ list may deprive Indonesia of export-import facilities received by developing countries.

Previously, Indonesia’s name is blotted from the list of developing countries in the World Trade Organization (WTO). Besides Indonesia, India and China are also removed from the list.

The President of the U.S, Donald Trump, criticized these countries, especially China as the second-largest economy in the world, which indulges in preferential trade treatment while being categorized as developing countries. For the 45th U.S president, it is unfair.

One of these facilities is the generalized system of preferences (GSP), an import customs duty facility given from the developed countries to the developing countries. Established by the U.S Trade Representative since 1974, GSP will reduce tariff on various products for least developed countries. As Indonesia’s status will change, the GSP is also feared to be pulled out as well.

If the impact of GSP’s absence is evident sooner or later, Indonesian economics experts suggested the Indonesian government strengthen the non-traditional market, remembering the volatility and unreliability of the U.S market.

Source: https://bit.ly/32k3QtC

Market , Finance , Economy , Export-Import , Commodity , ASEAN , Indonesia , Asia , India , China , GSP , Tariff , Customs , Duty