The Analysis of World Trade Organization Panel Decision of Indonesia Measures Relating to Raw Materials

Authors

  • Daffa Brilliandana Pratama Universitas Islam Indonesia

DOI:

https://doi.org/10.58355/justices.v3i3.121

Keywords:

Export Restriction, Downstreaming, WTO, GATT 1994

Abstract

European Union has requested a panel regarding Indonesia's restriction of exports and downstreaming of raw materials. According to the European Union, Indonesia's export and downstream policies violate World Trade Organization (WTO) provisions, namely Article XI:1 of the General Agreement on Tariffs and Trade (GATT) 1994. In the panel report, the World Trade Organization Dispute Settlement Body (WTO DSB) decided that Indonesia had been proven to have violated these WTO provisions. This thesis examines whether the WTO's ruling on Indonesia's restrictions on raw materials is justified and explores Indonesia's arguments in Appellate Body with the European Union regarding restrictions on nickel ore exports and downstreaming. The research methodology involves normative legal research, analyzing primary legal sources like legislation and secondary sources such as textbooks and case studies. The study delves into Indonesia's challenges in defending its policies at the WTO's Appellate Body. The primary research object is Indonesia's Measures relating to Raw Materials, particularly nickel ore, and relevant agreements like GATT 1994. Legal materials include Indonesian regulations on exports and GATT 1994, while secondary sources encompass statutory regulations, scientific journals, and related literature. The data collection method relies on library research. Using a qualitative approach, the thesis seeks a deep understanding of the core issues. Analytical methods include statutory interpretation, case studies, and grounded theory. The research finds Indonesia's measures non-compliant with GATT 1994 but suggests leveraging Article XXI, the Security Exception, as a strategic defense in the Appellate Body.

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References

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Cambridge Dictionary “Meaning of Quantitative in English”, accessed February 24, 2024, https://dictionary.cambridge.org/dictionary/english/quantitative

Cécile Jacob et al. In-Depth Analysis on Trade-related policy options of a ban on forced labour products, (Brussels: INTA).

Chao Wang. “Invocation of National Security Exceptions under GATT Article XXI: Jurisdiction to Review and Standard of Review,” Chinese Journal of International Law 18, no. 3 (2019).

Dapo Akande and Sope Williams, “International Adjudication on National Security Issues: What Role for the WTO,” Virginia Journal of International Law 43, no. 365 (2002).

Endah Sulastri, “Domestic Market Obligation (DMO) and its Role in Securing Domestic Coal Supply”, last modified May 12, 2022, accessed January 19, 2024, https://adcolaw.com/blog/domestic-market-obligation-dmo-and-its-role-in-securing-domestic-coal-supply/.

Goyal, A, The WTO and international environmental law. Towards conciliation (Oxford: Oxford University Press, 2006).

I Gusti Ngurah P. W., “Indonesia’s Export Ban on Nickel Ore: Does It Violate the World Trade Organization (WTO) Rules?”, Journal of World Trade 55, no. 4 (2021).

Ijang Suherman and Ridwan Saleh., “Supply Chain Analysis for Indonesian Nickel”, Indonesia Mining Journal 21, no. 1 (2018).

International Energy Agency. “Prohibition of the export of nickel ore”, World’s Top Exporters, http://www.worldstopexports.com/topnickel-exporters-by-country/, last modified 2023, accessed January 18, 2024.

Jason Sappor, “COVID-19 Turns Indonesian Ore Export Ban into Curse for Nickel Market”, S&P Global Market Intelligence, July 21, 2020.

Kresna Panggabean, “Indonesia Amends Regulation on Nickel Export to Boost Production of Value-added Products”, last modified 2019, accessed January 19, 2024, https://www.nortonrosefulbright.com/zh-hk/knowledge/publications/b571b094/indonesia-amends-regulation-on-nickel-export-to-boost-production-of-value-added-products.

Law No. 4 of 2009 on Mineral and Coal Mining as amended by Law No. 3 of 2020 and Law No. 11 of 2020 regarding Mineral and Coal Mining, Article 103.

Meaza Haddis Gebeyehu, “The Impact of Political Decisions within the WTO Disputre Settlement System: Political Negotiations within Adjudication”, Journal of World Trade 17, no. 1 (2019).

Mikaila J. Azzahra, and Yetty K. Dewi, “Re-examining Indonesia’s Nickel Export Ban: Does it Violate the Prohibition to Quantitative Restriction?”, Padjadjaran Journal of International Law 6, no. 2 (2022.

Ministry of Energy Mineral Resources Decree No. 154 of 2019.

Ministry of Energy Mineral Resources Regulation No. 25 of 2018, Preamble.

Muhammad R. S. Zaki, Muhammad H. Armanto, Rafsi A. H. Albar, et al, “Safeguarding Sovereignty: Indonesia’s Solution to the Raw Materials Case in WTO.” Indonesian Journal of International Law 20, no. 4, (2023).

Muhammad Reza Syariffudin Zaki et al, “Safeguarding Sovereignty: Indonesia’s Solution to the Raw Materials Case in WTO,” Indonesia Journal of International Law 20, no. 4 (2023).

Muhammad Reza Syariffudin Zaki, Winner Jhonshon, Paramita Glorya Pasaribu, et. al., Hukum Investasi, Multimoda, dan Perdagangan Internasional di Era Pandemi Covid-19: Investment Law, Multimodal and International Trade in Covid-19 Pandemic (Jakarta: Publica Indonesia Utama, 2022).

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Nyoman Ary Wahyudi, “Kontrak Freeport Bakal Diperpanjang Usai 2041, Pemerintah Siapkan Aturan”, last modified 2023, https://ekonomi.bisnis.com/read/20230526/44/1659688/kontrak-freeport-bakal-diperpanjang-usai-2041-pemerintah-siapkan-aturan.

Oliver Ruppel, and Emmanuel Yogo, Droit et politique de l'environnement au Cameroun - Afin de faire de l'Afrique l'arbre de vie: Environmental law and policy in Cameroon - towards making Africa the tree of life (Baden-Baden: Nomos Verlagsgesellschaft mbH, 2018).

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Raaj Bhala, “National Security and International Trade Law: What the GATT says, and What the US Does,” University of Pennsylvania Journal of International Economic Law 19, no. 2 (1998).

Roger P. Alford, “The Self-Judging WTO Security Exception,” Utah Law Review, no. 3 (2011).

Sebastián Mantilla Blanco dan Alexander Pehl, National Security Exceptions in International Trade and Investment Agreements: Justiciability and Standards of Review (Cham: Springer International Publishing, 2020).

Shin-yi Peng, “Cybersecurity Threats and the WTO National Security Exceptions,” Journal of International Economic Law 18, no. 2 (2015).

Statista, “Major Countries in Worldwide Nickel Mine Production in 2023”, last modified 2023, https://www.statista.com/statistics/264642/nickel-mine-production-by-country/#:~:text=In%202023%2C%20Indonesia's%20mines%20produced,worldwide%20by%20a%20large%20margin.

Tania Voon, “The Security exception in WTO law: Entering a new era,” AJIL Unbound 113, (February 2019): 47, DOI: 10.1017/aju.2019.3.

The General Agreement on Tariffs and Trade 1994, Article XI: 1.

Thomas Riesthuis, “The Legitimacy of Judicial Decision-Making: Towards Empirical Scrutiny of Theories of Adjudication”, Utrecht Law Review 19, no. 2 (2023).

Tomi Suryo, Hukum dan Kebijakan WTO, (Yogyakarta: Suluh Media, 2021).

Vicky Alvian Abdul Azis, and Sharda Abrianti, “Analisis terhadap Larangan Ekspor Bijih Nikel Kadar Renah berdasarkan Prinsip Restriksi Kuantitatif”, Hukum Pidana dan Pembangunan Hukum 3, no. 2 (2021).

World Trade Organization Appellate Body Report, Brazil – Retreaded Tyres, WT/DS332/AB/R,.

World Trade Organization Appellate Body Report, Brazil – Retreaded Tyres, WT/DS332/AB/R.

World Trade Organization Appellate Body Report, China - Measures Related to the Exportation of Various Raw Materials, WTO Docs. WT/DS394/AB/R, WT/DS395/AB/R, WT/DS398/AB/R, 2012.

World Trade Organization Appellate Body Report, China - Measures Related to the Exportation of Various Raw Materials 2012.

World Trade Organization Appellate Body Report, India – Solar Cells, WT/DS456/AB/R.

World Trade Organization Appellate Body Report, United States — Import Prohibition of Certain Shrimp and Shrimp Products, WT/DS58/AB/RW.

World Trade Organization Panel Body Report, China Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products, WTO Docs. WT/DS363/R, 2009.

World Trade Organization Panel Body Report, Japan – Trade in Semi-conductors, WTO Docs. L/6309 – 35S/116, 1988.

World Trade Organization Panel Report, China – Raw Materials, WT/DS394/AB/R; WT/DS395/AB/R; WT/DS398/AB/R.

World Trade Organization Panel Report, Indonesia – Measure relating to Raw Materials, WT/DS592/R.

World Trade Organization Panel Report, Indonesia – Measures relating to Raw Materials, WT/DS592/R.

World Trade Organization Panel Report, Indonesia – Measures relating to Raw Meterials, WT/DS592/R.

World Trade Organization, Request for Consultation by the European Union, WT/DS592/1 • G/L/1345 • G/SCM/D127/1, 2019.

World Trade Organization, Request for the Establishment of a Panel by the European Union, WT/DS592/3.

World Trade Organization, Turkey — Restrictions on Imports of Textile and Clothing Products, WT/DS34/14.

World Trade Organization, WTO Analytical Index - Guide to WTO Law and Practice 3rd Edition (Cambridge: Cambridge University Press, 2012), 562, https://gatt-disputes.wto.org/sites/default/files/books/GATT%20Analytical

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Published

2024-10-19

How to Cite

Daffa Brilliandana Pratama. (2024). The Analysis of World Trade Organization Panel Decision of Indonesia Measures Relating to Raw Materials. JUSTICES: Journal of Law, 3(3), 215–237. https://doi.org/10.58355/justices.v3i3.121