Indonesia – Safeguard on Certain Iron or Steel Products

2020 ◽  
Vol 19 (2) ◽  
pp. 152-163
Author(s):  
Thomas J. Prusa ◽  
Edwin A. Vermulst
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Viet Nam ◽  
Rolled Steel ◽  
Trade Area ◽  
Appellate Body ◽  
Preferential Tariff ◽  
Gatt 1994

AbstractIn July 2014, Indonesia implemented a safeguard tariff on galvalume, a type of galvanized flat-rolled steel. Chinese Taipei and Viet Nam challenged the measure, mainly claiming that Indonesia's administering authority failed to satisfy various substantive and procedural requirements of the GATT 1994 and the Safeguards Agreement. The Panel and AB found that the tariff was not a safeguard measure but rather was a simple increase in Indonesia's applied rate. Interestingly, Viet Nam, the largest import supplier, is a member of a free trade area with Indonesia, meaning Viet Nam is not subject to the MFN rate. Viet Nam's preferential tariff treatment likely influenced Indonesia's decision to claim the action was a safeguard. Ironically, even though the Appellate Body essentially rejected its claims, the ruling benefits Viet Nam.

scholarly journals Utilization of Preferential Tariff under ASEAN Free Trade Area (AFTA): Case of Malaysia

2015 ◽  
Vol 11 (4) ◽  
pp. 273-290
Author(s):  
Mohammed Faiz Shaul Hamid ◽  
Dr. Mohamed Aslam
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Product Lines ◽  
Trade Patterns ◽  
Minimal Impact ◽  
Trade Area ◽  
Preferential Tariff ◽  
Tariff Rates ◽  
Asean Countries ◽  
Indicators Of Success

Reducing numbers of tariff lines to 0% and increase in intra-regional trade are often indicators of success of ASEAN Free Trade Area (AFTA). With more members liberalizing their economies and actively reducing the Most Favoured Nation (MFN) rates, the preferential tariff under AFTA would have a minimal impact on trade patterns unless the preferential tariff treatment is effective. Based on the value of Certificate of Origin (COO) and its export to ASEAN countries, this paper plans to estimate and analyse the utilization of tariffs under AFTA in the case of Malaysia for the period of 2007-2011 to examine the effectiveness of preferential tariffs under AFTA. Analysis is expanded with a “MFN proxy” by excluding Singapore. The results show that the utilization rates remain low and this suggests that preferential tariff rates are only used for the similar products and there will always be a limited level of utilization as some product lines were liberated under MFN tariffs.

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