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Jakarta, CNBC Indonesia – The government of the United States (USA) finally extended the Generalized System of Preferences (GSP) mechanism with Indonesia on Friday (10/30/2020).
But this extension comes days before the US presidential elections between current Republican Donald John Trump and Democrat Joseph Robinette Biden. This certainly raises concerns about the ease of the GSP, which cannot be extended after the US presidential election.
Indonesian Ambassador to the US Muhammad Lutfi said there was a possibility that it would not be extended if the US Congress decided to terminate the legal umbrella for the GSP installation.
“It could happen,” Lutfi told a press conference on Monday (11/2/2020). “But our (GSP) is currently expanding with no exceptions, which means we can enjoy what we’ve been working on so far.”
The former Minister of Commerce explained that the SGP facility itself has existed since 1974 and has been expanded 15 times. This means that both the United States and Indonesia are improving the strategic trading positions of the two countries in this collaborative era.
“I am sure they will be extended as part of their diplomacy to host countries that have the same mindset as us,” Lutfi said.
In addition, he also said that if there is equality of democracy, freedom of choice and respect for the law, this will allow RI to obtain the GSP from the United States. He gave an example of Laos and Vietnam that were unable to obtain the GSP facility due to differences with the United States.
Laos itself is considered less democratic, does not respect the law, cannot grant rights to workers, so the United States has refused to obtain GSP facilities. Meanwhile, Vietnam, as a communist-based country, cannot get the GSP either.
“So this is part of the equality of values as described in the GSP. We are confident that this GSP will be extended (even if the president changes) and this will become a division of US commercial and political diplomacy,” he concluded.
For your information, the GSP is a trade mechanism for exemption from import tariffs that has been unilaterally provided by the US government to the developing countries of the world since 1974. Indonesia first received the GSP from the USA in 1980.
[Gambas:Video CNBC]
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