It is a great pleasure in presenting to readers the first issue of 2010 of the Journal of the World Studiespublished by Center for the World Trade Studies Universitas Gadjah Mada (can be cited as J. WTS U. Gadjah Mada). In this issue we publish a collection of essay on the theme of the WTO and the Third World. Those articles arose from a joint program between Center for the World Trade Studies Universitas Gadjah Mada and the World Trade Organization Chairs Program (WCP). In this issue we present five selected papers which are contributed by our senior researchers who come from the Faculty of Agriculture, the Faculty of Business and Economics, the Faculty of Social and Political Science, and a practicing lawyer specialized in international trade cases.
Tri Widodo opens this issue by examining the impact of unbalanced economic growth upon countries’ dynamic trade specialization. The writer concludes that domestic unbalanced economic growth has a positive and statistically significant impact on dynamic trade specialization in the cases of Indonesia and Malaysia, but not in the cases of Korea and Singapore. However, the world unbalanced economic growth has a statistically insignificant impact on the all selected countries’ dynamic trade specialization.
The second essay is written by Riza Noer Arfani start by arguing that despite resilient trends towards globalized economy, the post-cold war landscape of international political economic relations has been characterized by wide-ranging regional arrangements. The process predominantly aims at easing trans-border management in the frame of liberalizing economic relations. East/Southeast Asian and Latin American regional arrangements in particular are among major examples. The establishment of ASEAN Free Trade Area covering ten Southeast Asian countries which recurrently to be engaged with their East Asian neighboring partners (the so-called ASEAN+3) and MERCOSUR (Mercado Comun del Sur/the Common Market of the South) consisting of 4 (four) southernmost countries of South American continent is the milestone to further regional economic integration in each respective area.
In his paper, Masyhuri discuss the theoretical and possible impact of CAFTA on trade particularly in Indonesia. Since some products will be exported and imported more, this will increase production of some products and decrease production of some other products. The final benefit results will be depended on the readiness of the country. Masyhuri suggests to digging more benefit and to prevent losses through the promotion of some product, the protection of domestic production and increase the competitiveness of the country.
This issue of the Journal also discusses forms and steps in order to establish AEC 2015 as AFTA Plus, and also argue challenges in ASEAN and in Indonesia which is wide gaps among ten members of ASEAN to run program commitment of AEC. Mudrajad Kuncoro delivers that in Indonesian perspective, the relevant program would be establishment of presidential decree concerning ratification of Protocol to Implement the Third Package of Commitments on Financial Services under the ASEAN Framework Agreement on Services (AFAS).
The last but not least is a paper written by Joseph Wira Koesnaidi who conclude that Indonesia has much homework if it wants to be more active using the WTO Dispute Settlement System to secure its trading rights under the WTO. The government of Indonesia should see the importance of WTO litigations for its national interests, optimism on the future of Indonesia and WTO Dispute Settlement System should be built since WTO is a rule-based system and its major achievement is to have an effective dispute settlement mechanism.