Introduction

Author(s):  
Douglas A. Irwin

This chapter provides a background on why free trade is considered to be a desirable policy. It explains whether the most frequently made criticisms of free trade, such as its adverse impact on workers and the environment, have merit. It discusses what is the World Trade Organization (WTO), as well as how world trade rules erode a country's sovereignty and undermine its health and environmental regulation. The chapter also introduces basic economic principles and empirical evidence regarding international trade and trade policy. It mentions the perspective on free trade that was originally developed by David Hume and Adam Smith in eighteenth-century Scotland.

2020 ◽  
Vol 16 (2) ◽  
pp. 224-236
Author(s):  
Sekar Wiji Rahayu ◽  
Fajar Sugianto

AbstractThe creation of free trade provides a large advantage and role in driving the economic growth of a country, especially for developing countries that have abundant natural resources. One of the systems in free trade carried out by countries in the world in buying and selling produce is known as an export-import system. Where the seller is usually referred to as an exporter and the buyer is referred to as an importer. Like the general trading system, in international trade there are also obstacles that can be detrimental to one party and / or several parties in conducting international trade. These obstacles can be in the form of tariff barriers and / or non-tariff barriers. Non-tariff barriers can take the form of certain discriminations imposed by a particular country, both to protect the value of its production and to redevelop the product into something of even higher value. Both are pursed on one thing, hedging. Discrimination is also imposed by the European Union against the ban on imports of Palm Oil from Indonesia on the grounds that Palm Oil has a negative impact on the environment. Bearing in mind the European Union is one of the countries active in Environmental Health campaigns. Discrimination is also carried out by Indonesia to stop all exports of Nickel Ore and / or other minerals to the European Union with the consideration to hedge minerals that have not been downstreamed. Based on the discrimination actions, the two countries plan to submit complaints and complaints to the World Trade Organization (WTO) as a form of the two countries' objections to the policies taken.Keywords: international trade; mineral downstreaming; oil palmAbstrakTerciptanya perdagangan bebas memberikan keuntungan serta peran yang besar dalam mendorong pertumbuhan ekonomi suatu negara, khususnya bagi negara-negara berkembang yang memiliki Sumber Daya Alam (SDA) yang melimpah. Salah satu sistem dalam perdagangan bebas yang dilakukan oleh negara-negara di dunia dalam melakukan jual-beli hasil produksi dikenal sebagai sistem ekspor-impor. Dimana pihak penjual lazimnya disebut sebagai eksportir dan pihak pembeli disebut sebagai importir. Selayaknya sistem perdagangan pada umumnya, di dalam perdagangan internasional juga terdapat hambatan-hambatan yang dapat merugikan satu pihak dan/atau beberapa pihak dalam yang melakukan perdagangan internasional. Hambatan tersebut dapat berupa hambatan tarif dan/atau hambatan non tarif. Hambatan non tarif dapat berupa diskriminasi-diskriminasi tertentu yang diberlakukan oleh suatu negara tertentu, baik untuk melindungi nilai produksinya maupun untuk mengembangkan kembali produk tersebut menjadi sesuatu yang lebih tinggi lagi nilainya. Keduanya mengerucut pada satu hal, yakni lindung nilai. Diskriminasi tersebut juga diberlakukan oleh Uni Eropa terhadap pelarangan impor Kelapa Sawit dari Indonesia dengan alasan bahwa Minyak Kelapa Sawit menimbulkan dampak yang buruk terhadap lingkungan. Mengingat Uni Eropa merupakan salah satu negara yang aktif dalam kampanye-kampanye kesehatan lingkungan. Aksi diskriminasi juga diberlakukan oleh Indonesia untuk menghentikan seluruh ekspor Bijih Nikel dan/atau mineral lainnya kepada Uni Eropa dengan pertimbangan untuk melakukan lindung nilai terhadap mineral-mineral yang belum di hilirisasi. Atas tindakan-tindakan diskiriminasi tersebut, kedua negara berencana untuk mengajukan keluhan dan gugatan ke World Trade Organization (WTO) sebagai bentuk keberatan kedua negara terhadap kebijakan-kebijakan yang diambil.Kata kunci: hilirisasi mineral; kelapa sawit; perdagangan internasional


Author(s):  
Rafael Rosa Cedro

This article explores three distinct analytical approaches that offer insights for reflection on the issue of international trade – comparative advantages, dependency theory and GCC/GVC analyses – as a way of providing a critique of the functioning of the World Trade Organization (WTO) and its alleged defense of free trade as an engine for development.


2021 ◽  
pp. 001573252110154
Author(s):  
Swargodeep Sarkar

The most sanctified obligation of the World Trade Organization (WTO) is the promotion and facilitation of international trade and liberalisation of the world economy. Although WTO members are committed to the WTO principle of free flow of goods and services among its members, the WTO permits its members to retain certain regulatory powers under its system to impose trade-restrictive measures based on certain exceptions, like, among other things, public morality under Article XX(a) of the General Agreement on Tariffs and Trade (GATT, 1994). Nevertheless, the question remains: what is public morality for a WTO member, and how far may this clause be invoked in defence of adopting trade-restrictive measures? Recently, the WTO panel on the US tariff case revived the long-standing debate on international trade versus public morality. Is a WTO member free to choose any trade-restrictive measure under the cloak of public morality? Then, what mechanism has the WTO panel/AB (Appellate Body) envisaged to check WTO members from adopting any trade-restrictive measure based on public morals? This article tries to answer these questions by analysing previous WTO disputes related to trade and morality. Against this background, this article looks back at the history of the public-morals exception clause, revisits previous WTO case laws on the public-morals exception and tries to ascertain the precise meaning of public morality—how the WTO Dispute Settlement Body (DSB) checks and balances two conflicting principles, that is, the right to regulate and the principle of free trade—and whether WTO has successfully developed a coherent jurisprudential approach to deal with contradictory interests, that is, trade versus morality. JEL Codes: F, F1, F13


2021 ◽  
pp. 1-16
Author(s):  
Alessandra GUIDA

The international trade in biotech products boosts national economies and advances scientific as well as technology innovation. However, while trading these products increases the spread of benefits on a global scale, it also increases risks to human health and the environment (ie biosafety). This is because the effects of this technology on biosafety are still highly uncertain. Against this background, the judicial bodies under the World Trade Organization (WTO) find themselves in the middle of an intricate and polarised debate in which a proper judicial balance between free trade and biosafety becomes fundamental in order to determine whether requests for ensuring human and environmental health justify trade restrictions. This paper aims to highlight that the WTO is institutionally unready for balancing economic and non-economic values. In suggesting how to rationalise the judicial balance between the competing interests in the context of biotechnology, this paper demonstrates that the judicial adoption of a well-structured proportionality analysis can turn the current balance by chance into a balance by structure.


IKONOMIKA ◽  
2019 ◽  
Vol 4 (2) ◽  
pp. 171-180
Author(s):  
Hamzah Hamzah ◽  
Devika Tryza Ayodahya ◽  
MD. Sharifu Haque

Trade activity is one of the drivers of development in a country in order to obtain national development. In the current era of globalization, trade activities opened among the countries have developed quite rapidly. Indonesia has acquired a spinning wheel in international trade activities. Indonesia is actively involved in several negotiations concerning international trade and actively supports the national development. By becoming a member of the World Trade Organization, Indonesia has carried out important export activities to all parts of the world. Indonesia itself has special rules regarding important goods, specifically about food ingredients. Indonesia stops importing chicken because of the absence of halal labeling on these food ingredients. Indonesia is a country which most of its citizens are Muslim. Food which is consumed for Indonesia Muslim people is not only about safe and healthy but also about halal . Due to this rule, Brazil suffered a quite big loss and filled a lawsuit to WTO. The purpose of this study was to analyze the Indonesian national law regarding halal certification and how to resolve the dispute between Brazil and Indonesia on the issue of importing chicken meat.Keywords: Consumer Protection, Halal Certificate, WTO.


2021 ◽  
Vol 2 (2) ◽  
pp. 165-173
Author(s):  
Marsanto Adi Nurcahyo ◽  
Ario Seno Nugroho

The covid-19 pandemic has caused a global economic slowdown. Trade institutions and customs institutions provide facilities that are expected to encourage the economy not to fall into a sharp decline. The World Trade Organization (WTO) and the World Customs Organization (WCO) as world organizations that regulate the movement of goods between countries have also issued instructions for their member countries to deal with this pandemic situation. This study aims to determine how the implementation of customs facilities and international trade during this pandemic. The research method used is a qualitative research method with descriptive techniques. The data used in this study are secondary data such as reports, research, and guidelines. The results of the study show that Indonesia has implemented customs facilities and international trade during this pandemic. This is following the guidelines published by the WTO and WCO, which are world organizations related to international trade. Programs carried out by Indonesia are also carried out by other countries which are good practices in international trade activities. The implication of this research is to recommend the customs institution to continue to increase cooperation with other border agencies in the form of coordinated border management..   Pandemi covid-19 telah membuat perlambatan ekonomi secara global. Institusi perdagangan dan institusi kepabeanan memberikan fasilitas yang tujuannya diharapkan dapat mendorong perekonomian tidak jatuh dalam penurunan yang tajam. World Trade Organization (WTO) dan World Customs Oganization (WCO) selaku organisasi dunia yang mengatur pergerakan barang antar negara juga telah mengeluarkan petunjuk bagi negara anggotanya untuk menghadapi situasi pandemi ini. Penelitian ini bertujuan untuk mengetahui bagaimana implementasi fasilitas kepabeanan dan perdagangan internasional dalam masa pandemi ini. Metode penelitian yang dilakukan adalah metode penelitian kualitatif dengan teknik deskriptif. Data yang digunakan dalam penelitian ini adalah data sekunder seperti laporan, penelitian, dan buku petunjuk. Hasil dari penelitian menunjukkan bahwa Indonesia telah mengimplementasikan fasilitas kepabeanan dan perdagangan internasional selama masa pandemi ini. Hal tersebut sesuai dengan panduan yang diterbitkan oleh WTO dan WCO yang merupakan badan dunia terkait dengan perdagangan internasional. Program yang dilakukan Indonesia juga dilakukan oleh negara lain yang merupakan good practices pada kegiatan perdagangan internasional. Implikasi dari penelitian ini adalah merekomendasikan kepada institusi kepabeanan agar terus meningkatkan Kerjasama dengan badan perbatasan lainnya dalam bentuk coordinated border management.  


2020 ◽  
pp. 495-518
Author(s):  
Nicolas de Sadeleer

This chapter focuses on the conflict between the precautionary principle and free trade within the World Trade Organization (WTO). It explains that the said conflict illustrates the role that environmental principles can play in modifying a debate with major legal as well as societal implications. It stresses the odd twists and tangled hierarchies characteristic of post-modern law which may be encountered in disputes involving trade and the environment.


2021 ◽  
pp. 775-812
Author(s):  
Alan Boyle ◽  
Catherine Redgwell

This chapter looks at the relationship between the World Trade Organization (WTO) and international trade in terms of international environmental law. Twenty-five years after the WTO system came into operation it appears that neither trade law nor environmental law have trumped each other. Rather, there has been a process of accommodation which is still ongoing. The chapter ends by making some conclusions on the arguments presented in this book and the issues currently being faced. The current policy of encouraging free trade cannot always be made environmentally friendly and this will always be the case. The problem becomes clear if we consider climate change. Free trade and globalisation by nature exacerbates the difficulties of regulating environmental issues. In addition, one of the key problems with sustainable development as a concept is that there has been too much emphasis on development, and not nearly enough on sustainability, then a policy of promoting free trade is part of that problem.


2019 ◽  
Vol 23 (1) ◽  
pp. 165-185
Author(s):  
Jong Bum Kim

ABSTRACT A cross-cumulation arrangement helps manufacturers meet the demands of the global value chain economy by facilitating the sourcing of intermediate products within the territories of participants in the arrangement. It is a de facto free-trade area formed by a network of bilateral free-trade areas underpinning the arrangement. However, a cross-cumulation clause provided in a bilateral free-trade area that underpins a cross-cumulation arrangement is inconsistent with General Agreement on Tariffs and Trade (GATT) Articles I and III because the intermediate products from the participants in the arrangement are more favorably treated than products from non-participants in the arrangement. The GATT inconsistencies of a cross-cumulation clause cannot be justified by the GATT Article XXIV exception, because a cross-cumulation clause of a bilateral free-trade area derogates from the free-trade area’s aim by facilitating trade in intermediate products between the free-trade area parties and non-parties to the free-trade area that are participants in the arrangement. In contrast, a cumulation clause provided in a free-trade area contributes to the free-trade area’s aim by facilitating trade in intermediate products between the parties to the free-trade area. To bring a cross-cumulation arrangement such as the Regional Convention on Pan-Euro-Med Preferential Rules of Origin into conformity with World Trade Organization law, the arrangement and its underlying free-trade areas should be recognized as a de jure free-trade area under GATT Article XXIV and notified to the World Trade Organization as such. A large cross-cumulation arrangement as a mega-free-trade area is likely to contribute to the world trading system by harmonizing divergent free-trade area rules of origin and providing an efficient mechanism for the formation of a mega-free-trade area.


Author(s):  
Carsten Herrmann-Pillath

Based on Rodrik’s diagnosis of a “globalization trilemma” in designing the institutions of international economic exchange, this chapter suggests a solution that applies Sen’s argument favoring realization-focused comparisons over transcendental institutionalism in evaluating institutions. In the paradigm of deliberative trade policy, this contribution approaches the World Trade Organization (WTO) as a regime of deliberation, reaching beyond the scope of interactions with civil society. This prepares the ground for normative principles of WTO reform that shift the emphasis from efficiency to justice, mainly in the procedural sense. The central operational criterion is the inclusiveness of international trade and trade policy. This is applied on the issues of multilateralism versus regionalism and the design of the dispute settlement process. A WTO renewed under the auspices of deliberative trade policy can meet the challenges of new trade policy issues such as coordination of regulatory regimes under the conditions of rapid and unpredictable technological change, and can resolve the tension between democracy and globalization as laid out in the globalization trilemma.


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