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MAPPING THE MECHANISM FOR TRADE DISPUTE RESOLUTION IN THE BILATERAL FREE TRADE AGREEMENT BETWEEN INDONESIA AND PARTNER COUNTRIES

Abstract

Indonesia actively promotes international trade liberalization through various free trade agreements (FTAs) with partner nations. This study focuses on the dispute settlement mechanisms (DSM) within Indonesia's bilateral FTAs, given that most partners are World Trade Organization (WTO) members, making a comparison relevant. The research is divided into three main parts: explaining international trade dispute settlement mechanisms, mapping DSMs in Indonesia's FTAs, and conducting a comparative analysis. It aims to answer how dispute settlement mechanisms are structured in Indonesia's bilateral FTAs. Based on the mapping, it is found that the majority of Indonesia's bilateral FTAs align with WTO dispute resolution methods but lack appellate mechanisms. The DSM in bilateral FTAs can be an alternative to resolve trade disputes to obtain a more final and binding decision, considering that all FTAs only use first-level adjudication. This is significant, especially with the WTO Dispute Settlement Body (DSB) experiencing panel member vacancies, rendering the appeals process obsolete.

Bahasa Abstract

Bahasa Indonesia secara aktif mendorong liberalisasi perdagangan internasional melalui berbagai perjanjian perdagangan bebas (FTA) dengan negara mitra. Penelitian ini berfokus pada mekanisme penyelesaian sengketa (DSM) dalam FTA bilateral Indonesia, mengingat bahwa sebagian besar mitra adalah anggota Organisasi Perdagangan Dunia (WTO), membuat perbandingan yang relevan. Penelitian ini dibagi menjadi tiga bagian utama: menjelaskan mekanisme penyelesaian sengketa perdagangan internasional, memetakan DSM dalam FTA Indonesia, dan melakukan analisis komparatif. Ini bertujuan untuk menjawab bagaimana mekanisme penyelesaian sengketa terstruktur dalam FTA bilateral Indonesia. Berdasarkan pemetaan, ditemukan bahwa mayoritas FTA bilateral Indonesia selaras dengan metode penyelesaian sengketa WTO tetapi tidak memiliki mekanisme banding. DSM dalam FTA bilateral dapat menjadi alternatif untuk menyelesaikan sengketa perdagangan untuk mendapatkan keputusan yang lebih final dan mengikat, mengingat semua FTA hanya menggunakan adjudicasi tingkat pertama. Hal ini penting, terutama karena Badan Penyelesaian Sengketa WTO (DSB) mengalami kekosongan anggota panel, yang membuat proses banding menjadi usang.

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