In this issue, the Journal of the World Trade Studies presents five selected articles focusing mainly on developing countries in global trading system. Some of the articles published in this issue were already presented at the International Conference on ‘Enhancing Indonesia’s Competitiveness in Contemporary Trade’ on 3 October 2011. This conference was organized by the Center for World Trade Studies in cooperation with the Indonesian Ministry of Trade, the Indonesian Ministry of Foreign Affairs, and the Indonesian Ministry of Agriculture. In addition, the authors of the current issue are not only Indonesian researchers but also researchers from other countries. The contribution of international researchers exhibits the merit of networking under the WTO Chairs Programme.
The first article is written by Maharani Hapsari (lecturer at Department of International Relations, Universitas Gadjah Mada). She argues that managing environmental standards as a form of environment-related trade barriers has become increasingly important for producing countries that are active participants in global commodity trading. Current international environmental standardization in trade shows stronger tendency of convergence between sustainability criteria developed by the private sector and government regulations that apply in importing countries. Subsequently, such standards have overtime become guidelines for policy reforms in producing countries. To that end, the increasing role of private actors in pushing for higher environmental standards has generated new dynamics in production-trade relations, which have overtime become increasingly complex. As a consequence, producing countries, now face multi-layered trade barriers before their products gain access to importing markets.
Ambiyah Abdullah (PhD student at Nagoya University) argues in the second article that there has been a shift in the destination of Indonesian palm oil exports from European markets to India and China in recent years. This article aims to estimate the demand of these two countries for Indonesian palm oil exports. This article further argues that price supporting policies play an important role behind the increase in the quantity of the demand for Indonesian palm oil exports. This article concludes that it is crucial to disaggregate palm oil data into crude palm oil data and refined palm oil products. This can contribute significantly to improve the results of the price estimation and income elasticity of Indonesian palm oil export for both India and China.
Empowering local communities through traditional knowledge protection is the topic of the third article, written by Ayub Torry Satriyo Kusumo (lecturer in International Law at Faculty of Law Sebelas Maret University). This article presents the current state of affairs with respect to local community empowerment through a traditional knowledge protection system in Indonesia. This article also intends to analyze the potential impact of traditional knowledge protection management on the Indonesian economy, and also making recommendations on the formulation and development of a new policy on the protection of traditional knowledge.
Seth Omondi Gor (Senior lecturer at the School of Economics, University of Nairobi) in the fourth article attempts to assess the welfare effects of East African Community (EAC) on partner Editorial 4 Journal of World Trade Studies states in the backdrop of multiple memberships in different Regional Trade Agreements. Using UN COMTRADE database at 6 digit level of aggregation with HS96 nomenclature, this article estimates a number of trade indicators with a view to evaluating the composition of trade structures, trade flows, the degree of openness of the economies, and the potential for trade diversion or creation, all of which have critical implications for EAC’s integration process. On the basis ofthese indicators, the article finds that EAC is welfare enhancing to partner states.
The last article is written jointly by Xin Xu and Lei Zhang (both lecturers at Shanghai Institute of Foreign Trade). This article argues that since the rules of WTO agreements became more and more technical, and more and more disputes involved the expertise in the field of science or technology, the consultation with experts procedure became increasingly important. The authors further argue, however, although the Panel is authorized by the WTO rules to start such a procedure, there are no detailed rules guiding the Panel as how to operate in the practice. Under such a circumstance, the Panel had to establish the temporary rules for this procedure after consultation with the parties to the dispute in each case. Many problems relevant to the due process then arose from such temporary rules. This paper, therefore, tries to analyze major problems that receiving the most controversy and accusation, and will give suggestions as for how to reform this procedure.
Coping with Environmental Standards in Trade: Indonesian Experience with Sustainable Palm Oil Debate
Maharani Hapsari (Lecturer at the Faculty of Social and Political Science, Universitas Gadjah Mada, Indonesia)
Managing environmental standards as a form of environment-related trade barriers has become increasingly important for producing countries that are active participants in global commodity trading. Current international environmental standardization in trade, shows stronger tendency of convergence between sustainability criteria developed by the private sector and government regulations that apply in importing countries. Subsequently, such standards have overtime become guidelines for policy reforms in producing countries. To that end, the increasing role of private actors in pushing for higher environmental standards, has generated new dynamics in production-trade relations, which have overtime become increasingly complex. As a consequence, producing countries, now face multi-layered trade barriers before their products gain access to importing markets.
Keywords: environmental-related trade barrier, environmental standardization, sustainability, Indonesia, palm oil
Estimating Demand of India and China for Indonesian Palm Oil Export
Ambiyah Abdullah (PhD student at University of Nagoya)
There has been a shift in the destination of Indonesian palm oil exports from European markets to India and China in recent years. This article aims to estimate the demand of these two countries for Indonesian palm oil exports. This article argues that price supporting policies play an important role behind the increase in the quantity of the demand for Indonesian palm oil exports. This article concludes that it is crucial to disaggregate palm oil data into crude palm oil data and refined palm oil products. This is because it can contribute significantly to improve the results of the price estimation and income elasticity of Indonesian palm oil export for both India and China.
Keywords: palm oil exports, price estimation, income elasticity
Empowering Local Communities Through Traditional Knowledge Protection
Ayub Torry Satriyo Kusumo (Lecturer at Department of International Law, Faculty of Law, Sebelas Maret University)
This article examines the current state of affairs with respect to local community empowerment through a traditional knowledge protection system in Indonesia, analysis of the potential impact of traditional knowledge protection management on the Indonesian economy, and making recommendations on the formulation and development of a new policy on the protection of traditional knowledge. The study is a doctrinaire research, and used a juridical approach. Secondary data were used , obtained largely through conducting a literature review of both printed and electronic materials publicly available in the library and internet. Content analysis technique based on deductive methods, was used in analyzing the data. The study came up with several findings. First, trade Related aspects of Intellectual Property Rights, Including Trade in Counterfeit Goods (TRIPs) Agreement as embodied in the provisions of the World Trade Organization (WTO) in 1994, succinctly show that Intellectual Property Rights issues are inseparable from world trade and investment. Secondly, protection system for traditional knowledge can achieved by using laws that relate to Intellectual Property Rights (IPR) as well as non-IPR instruments, and using instruments other than laws. Thirdly, IPR is vitally important as it provides legal protection to commercial works.
Keywords: TRIPs, World Trade Organization, Traditional knowledge, Intellectual Property Rights
The Turn towards Regional Trade Agreements: Is EAC Welfare Enhancing to Partner States?
Seth Omondi Gor (Senior lecturer at School of Economics, University of Nairobi)
This study attempts to assess the welfare effects of EAC on partner states in the backdrop of multiple memberships in different Regional Trade Agreements. Using UN COMTRADE database at 6 digit level of aggregation with HS96 nomenclature, we estimate a number of trade indicators with a view to evaluating the composition of trade structures, trade flows, the degree of openness of the economies, and the potential for trade diversion or creation, all of which have critical implications for EAC’s integration process. On the basis of these indicators, we find that EAC is welfare enhancing to partner states.
Keywords: Regional Trade Agreement (RTA), East African Community (EAC), Revealed Comparative Advantage (RCA)
The Consultation with Experts Procedure in WTO Dispute Settlement System
Xin XU and Lei ZHANG (Xin XU, lecturer of law, Lei ZHANG, professor of law, both authors currently serviced in WTO School of Research and Education, Shanghai Institute of Foreign Trade, Shanghai, People’s Republic of China)
Followed the rules of WTO covered agreements became more and more technical, and more and more disputes involved the expertise in the field of science or technology, the consultation with experts procedure became increasingly important. However, although the Panel is authorized by the WTO rules to start such a procedure, there are no detailed rules guiding the Panel as how to operate in the practice. Under such a circumstance, the Panel had to establish the temporary rules for this procedure after consultation with the parties to the dispute in each case. Many problems relevant to the due process then arose from such temporary rules. This paper tries to analysis the major problems thereof that receiving the most controversy and accusation, and will give suggestions as for how to reform and perfect this procedure.
Keywords: consultation with experts procedure , expert review group, individual expert due process
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