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WTO ruling against import licensing scheme Indonesia creates export opportunities for potato processing companies

The World Trade Organization (WTO) ruling is expected to increase the export of potato products to Indonesia - such as frozen french fries.

The National Potato Council applauds the United States Trade Representative’s victory in the World Trade Organization (WTO) case against Indonesia’s restrictive import licensing scheme.

The ruling will increase potato exports and demonstrates the value of the WTO in fairly resolving trade disputes. The potato industry appreciates the commitment by the US Office of the Trade Representative to initiate and successfully conclude this case that was very important for the US potato processing industry.

Indonesia is an important market for US potato products. Due to this country's illegal import licensing scheme, US frozen potato exports to Indonesia amounted to only $18 million in 2016.

By comparison, the smaller neighboring market of Malaysia has no restrictive import licensing requirements and shipments of similar potato products to Malaysia exceeded $41 million in 2016.

John Keeling, National Potato Council Executive Vice President:

“This is an important step in advancing the effort to have fair, balanced trade with our key trading partners.”

“As a result of the efforts of USTR and the final ruling by the WTO this week, we expect the trade restrictive Indonesian import licensing system will be dismantled and believe it will result in greater potato exports to the fourth most-populous country in the world.”