The World Trade Organization has turned down Indonesia's appeal against a ruling that trade barriers imposed since 2011, which hurt New Zealand's beef exports, were inconsistent with global trade rules.
New Zealand had invoked WTO dispute settlement consultations with Indonesia in 2013 and 2014 over 18 trade barriers it said had resulted in an 80 per cent drop in the nation's exports to Indonesia of beef and horticultural products such as apples and onions.
Prior to the restrictions, Indonesia was New Zealand's second-largest market for beef, worth $180 million a year, and the accumulated trade impact was an estimated $500 million to $1 billion, according to the complaint.
Consultations between the two countries failed to resolve the dispute and in 2015 New Zealand escalated its complaint by requesting the WTO Dispute Settlement Body establish a panel for a hearing. The US made a panel request at the same time and became a co-complainant. Former Prime Minister John Key raised the issue with his Indonesian counterpart during a visit in 2016.
Last December the WTO panel ruled in New Zealand's favour, concluding that the 18 measures were inconsistent with rules under GATT 1994 that prohibit import restrictions.