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Indonesia's API urges reprisal if US hikes textile tariff

Jul '18
If the United States imposes higher tariffs on textile imports from Indonesia, it will badly affect the country’s textile industry, and therefore, must be countered, according to Ade Sudrajat, chairman of the Indonesian Textile Association (API), who feels the huge imports of agricultural products from the United States could be used as a bargaining chip.

"It will be unfair for us if the textile industry is targeted and the government prefers to do nothing," he told a top Indonesian English-language daily.

US President Donald Trump has warned that he may revoke special trade tariffs for Indonesia, especially on textiles. The United States was Indonesia's second-largest export destination last year, at 11 per cent of total exports, or $17 billion.

Indonesia exported textile products, both knitted and unknitted, worth $4.12 billion to the United States last year.

Indonesian Trade Minister Enggartiasto Lukita has said he would first prefer trade diplomacy though he did not rule out retaliatory tariffs.

Meanwhile, a government trade delegation led by Lukita left for the United States on July 23 for discussions and lobbying following the US policy to review its generalized system of preferences for Indonesia. (DS)

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