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9 Indonesian J. Int'l L. 617 (2011-2012)
The Protection of Domestic Industry through Safeguards Instruments GATT/WTO and Its Implementation on Downstream Steel Industry in Indonesia

handle is hein.journals/indjil9 and id is 665 raw text is: 





The   Protection of Domestic Industry through Safeguards
   Instrument GATT/WTO and Its Implementation on
           Downstream Steel Industry In Indonesia




                              Eva   Johan *


    World Global Crisis causes all trade world find difficulties. There will be increasing particularly
    import product in a country, including to Indonesian market. This getting worse by the implementation
    offree trade agreement between ASEAN member and China in the form ofASEAN China Free Trade
    Agreement (ACFTA). Steel as national strategic industry is a vital industry for developing country
    like Indonesia, so government should protect it against incursion of import products. Indonesia as
    member of WTO can use GATT/WTO safeguards instrument to protect domestic downstream steel
    industry from increasing import of downstream steel product. The protection for domestic industry
    through safeguards GATT/WTO instrument in Indonesia executed under trade security instruments,
    namely President Decision (Kepres No. 84 Year 2002) and Act 17/2006 (UU No. 17 Year 2006).
    Therefore, this article analyzes: first, how to protect domestic industry through safeguards GATT
    WTO instrument in Indonesia and, how does implementation ofsafeguards instrument has protecting
    Indonesia domestic downstream steel industries.


Keywords  : Protection, Domestic Industry, Safeguards, Downstream Steel Industry



I.  Introduction

    Free trade  always  give an  advantage  in one  hand,  such as possibil-
ity to impor  product  higher than  domestic,  so it able to cause competi-
tion between   importir  and  domestic   producer.  In  turn, it will trigger
domestic  producer   to do efficiency, lower price, and  improving   quality.
Furthermore,   free trade  will increasing  volume trading of a country,
and  effecting the economic   growth.  But  in the other hand,  many   facts,
especially  in developing   country,  they suffer  some  economic injuries
with this free trade agreement.'
    Free  trade never  separate  with  General  Agreement on Tariffs and
Trade  (GATT).   After World  War  II Year  1945, United  States and  Aliens
as an economic   and  politic power, initiated Bretton Wood Conference. 2


* Lecturer at Law Faculty, University of Sultan Ageng Tirtayasa, Banten.
1 Hendra Halwani, Ekonomi Internasional dan Globalisasi Ekonomi , Edisi Kedua,
Ghalia Indonesia, Jakarta, 2005, p. 322.
2 Bretton Woods Conference, held in United Statesof Amerika on July 1944, which


Volume 9 Number 4 July 2012


617

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