Article contents
The Evolution of the Dispute Settlement Mechanism in Preferential Trade Agreements [PTAs]: The Case of Indonesia
Published online by Cambridge University Press: 28 August 2020
Abstract
The dispute settlement mechanism [DSM] under preferential trade agreements [PTAs] is crucial to ensure adequate implementation and enforcement of commitments among contracting parties. The DSM has evolved from political/diplomatic styles with a low level of legalism to judicial styles with a high level of legalism. Indonesia has also experienced this evolution process in its PTAs. This paper aims to show the evolution of the DSM in Indonesian PTAs, analyzing several related factors behind this trend. The paper argues that the evolution of the DSM from the GATT to WTO, Indonesia's participation in regional trade agreement, that is, ASEAN, the influence of trade partners, the existence of domestic factors, and the ongoing WTO dispute encourage the evolution of the DSM in Indonesian PTAs from political styles to more judicial styles with a high level of legalism.
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Footnotes
Lecturer of Faculty of Law Udayana University, Indonesia; PhD Candidate Melbourne Law School, Australia. The author is grateful to the anonymous reviewers of the Journal.
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211. Ibid., art. 5.
212. Ibid.
213. Ibid., art. 8.
214. Yan, supra note 27.
215. ASEAN DSM, supra note 208, art. 9.
216. Ibid., art. 12(1).
217. Ibid., art. 12(12).
218. Ibid., art. 12(2).
219. Ibid., art. 12(3).
220. Ibid., art. 12(13).
221. Yan, supra note 27.
222. ASEAN DSM, supra note 208, art. 14.
223. Ibid., art. 15(1).
224. Ibid., art. 15(4).
225. Ibid., art. 15(6).
226. Ibid.
227. Ibid., art. 12(3).
228. Ibid., art. 17.
229. Yan, supra note 27.
230. Walter WOON, “Dispute Settlement in ASEAN” Centre for International Law (17 October 2011), online: NUS <https://cil.nus.edu.sg/wp-content/uploads/2010/08/DISPUTE-SETTLEMENT-IN-ASEAN-KSIL-ProfWalterWoon.pdf>.
231. ASEAN-China FTA, supra note 22.
232. ASEAN-India FTA, supra note 23.
233. ASEAN-Korea FTA, supra note 24.
234. ASEAN-Japan FTA, supra note 25.
235. ASEAN-ANZ FTA, supra note 26.
236. ASEAN-India FTA, art. 4; ASEAN-China FTA, art. 4; ASEAN-Korea FTA, art. 3; ASEAN-Japan FTA, art. 62; ASEAN-ANZ FTA, ch. 17, art. 6.
237. ASEAN-India FTA, art. 5; ASEAN-China FTA, art. 5; ASEAN-Korea FTA, art. 4; ASEAN-Japan FTA, art. 63; ASEAN-ANZ FTA, ch. 17, art. 7.
238. ASEAN-India FTA, art. 6; ASEAN-China FTA, art. 6; ASEAN-Korea FTA, art. 5; ASEAN-Japan FTA, art. 64; ASEAN-ANZ FTA, ch. 17, art. 8.
239. ASEAN-India FTA, art. 8; ASEAN-China FTA, art. 8; ASEAN-Korea FTA, art. 7; ASEAN-Japan FTA, art. 66; ASEAN-ANZ FTA, ch. 17, art. 10.
240. ASEAN-India FTA, art. 7; ASEAN-China FTA, art. 7; ASEAN-Korea FTA, art. 6; ASEAN-Japan FTA, art. 65; ASEAN-ANZ FTA, ch. 17, art. 11
241. ASEAN-China FTA, art. 7; ASEAN-Korea FTA, art. 6(3); ASEAN-Japan FTA, art. 65(3); ASEAN-ANZ FTA, ch. 17, art. 11(7).
242. ASEAN-China FTA, supra note 22, art. 7(3)
243. ASEAN-India FTA, supra note 23, art. 7(3).
244. ASEAN-India FTA, art. 11; ASEAN-China FTA, art. 9; ASEAN-Korea FTA, art. 10; ASEAN-Japan FTA, art. 68; ASEAN-ANZ FTA, ch. 17, art. 13.
245. ASEAN-India FTA, art. 12; ASEAN-China FTA, art. 9(7); ASEAN-Korea FTA, art. 11(2); ASEAN-Japan FTA, art. 69; ASEAN-ANZ FTA, ch. 17, art. 13(13).
246. ASEAN-India FTA, art. 13; ASEAN-China FTA, art. 9(8); ASEAN-Korea FTA, art. 12; ASEAN-Japan FTA, art. 69(6).
247. ASEAN-ANZ FTA, supra note 26, ch. 17, art. 13(3).
248. Ibid., ch. 17, art. 5.
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250. “New Indonesian-Japanese deal to be signed in late 2019” The Jakarta Post (3 July 2019), online: The Jakarta Post <https://www.thejakartapost.com/news/2019/07/03/new-indonesian-japanese-deal-to-be-signed-in-late-2019.html>.
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261. Department of Foreign Affairs and Trade of Australia, Why has the Australian Government Negotiated a Comprehensive Economic Partnership Agreement with Indonesia?, online: DFAT <https://dfat.gov.au/trade/agreements/not-yet-in-force/iacepa/Pages/why-has-the-australian-government-negotiated-a-comprehensive-economic-partnership-agreement-with-indonesia.aspx>.
262. Ibid.
263. Ibid.
264. Department of Foreign Affairs and Trade Australia, “Indonesia-Australia Comprehensive Partnership Agreement, Outcome: Skills Development” (last updated 27 June 2019), online: DFAT <https://dfat.gov.au/trade/agreements/not-yet-in-force/iacepa/outcomes-documents/Pages/outcomes-skills-development.aspx>.
265. Ibid.
266. Ibid.
267. VANDENBOSCH, Amry and VANDENBOSCH, Mary Belle, Australia Faces Southeast Asia: The Emergence of a Foreign Policy (Kentucky, KY: University Press of Kentucky, 1967)Google Scholar at 41.
268. CHAUVEL, Richard, “Australia's Strategic Environment: The Problem of Papua” (2004) 11 Journal of Policy Analysis and Reform at 40–1Google Scholar. See also UMETSU, Hiroyuki, “Australia's Response to the West New Guinea Dispute, 1952–53” (2004) 39 Journal of Pacific History at 59CrossRefGoogle Scholar.
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275. IA-CEPA, supra note 2, preamble.
276. Ibid., art. 20.4.
277. Ibid., art. 20.8.
278. Ibid., art. 20.9.
279. Ibid., art. 20.10.
280. Ibid., art. 20.15.
281. Ibid., art. 20.11.
282. Ibid., art. 20.13.
283. Ibid., art. 20.14.
284. Jo and Namgung, supra note 50 at 1048.
285. IA-CEPA, supra note 2, art. 20.3.
286. World Trade Organization, “Australia—Certain Measures Concerning Trademarks, Geographical Indications and Other Plain Packaging Requirements Applicable to Tobacco Products and Packaging” (28 August 2018), online: WTO <https://www.wto.org/english/tratop_e/dispu_e/cases_e/DS467_e.htm>.
287. Ibid.
288. World Trade Organization, “Australia—Anti-Dumping Measures on A4 Copy Paper”, online: WTO <https://www.wto.org/english/tratop_e/dispu_e/cases_e/DS529_e.htm>.
289. Ibid.
290. The reformation process reflects the transitional process of Indonesia's governmental systems from authoritarian rule to democracy by amending Indonesia's constitution. Some basic reforms are the restriction of presidential powers, the adoption of decentralization, people's sovereignty, direct presidential election, and legislative and judicial reform. See e.g. INDRAYANA, Denny, Indonesian Constitutional Reform 1999–2002: An Evaluation of Constitution-Making in Transition (Jakarta: Kompas, 2008)Google Scholar at 148–53.
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