Indonesia not to appeal WTO ruling on U.S. tobacco ban

Indonesia will not lodge an appeal against a WTO ruling on the import ban of flavored tobacco by the United States, citing satisfaction despite losing its argument on the efficacy of the ban in reducing the number of young smokers, the Jakarta Post reported here on Saturday, Xinhua informs.
Director General for International Trade Gusmardi Bustami told reporters on Friday that Indonesia had won the backing of the WTO on its stance regarding the discriminatory nature of the U.S. import ban.
Gusmardi said that his office was preparing a submission on Indonesia's legal position on the WTO ruling and in response to the arguments in the U.S. appeal. He said the submissions were scheduled for Jan. 23.
The U.S. Food and Drug Administration banned cigarettes with fruit, confectionery or clove flavors in September 2009, saying such cigarettes were particularly attractive to children.
Indonesia launched a formal dispute at the WTO against the ban on April 7. The WTO's Dispute Settlement Body issued a ruling on Sept.2, 2011, saying the U.S. violated international trade rules by favoring domestically produced menthol-flavored cigarettes.
The ban affected Indonesia's clove cigarette industry as it immediately blocked nearly 200 million U.S. dollars in exports to the U.S. market.
The Indonesian government deems the ban discriminatory as the U. S. still allows the sales of menthol flavored cigarettes that are produced widely in the U.S. and smoked by about 19 million Americans.