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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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