Senin, 08 Juni 2015

Grey area in the WTO safeguard measures


Safeguard is one of the component that exists in international organization, specially on the oganization who is dealing with trade, commerce, investment, finance and etc. The definition of safeguard it self is a restriction of imports temporarily, in order to protect a specific domestic industry from an increase in imports of any product which is causing, or which is threatening to cause, serious injury to the industry (national or local industry). If we are talking about the safeguard clauses that regulates in World Trade Organization. this clause can be found since the GATT, in article 19, The duration  of a measure may not exceed four years but the country can extended up to eight years. 

The developing countries Members receive special and differential treatment with respect to other Members' safeguard measures, and with respect to applying their own such measures. A safeguard measure shall not be applied to low volume imports from developing countries Members, that is where a single developing country Member's products account for no more than 3 percent of the total subject imports, as long as products originating in those low-import-share developing country Members collectively do not exceed 9 percent of imports. 

In applying safeguard measures, developing country Members may extend the application of a safeguard measure for an extra two years beyond that normally permitted. In addition, the rules for re-applying safeguard measures with respect to a given product are relaxed for developing country Members.

It is also important to distinct or understand the difference between safeguard, dumpling, subsidies and countervail measures.
1. dumpling is the action taken by foreign investor or company that sale their product more cheaper in the certain imports countries in comparison to the other countries or in their own country. the purpose of the dumpling mostly is to killed the rival or to undertake the market in the certain countries, 
2. subsidies and countervail measures, means a donor or financial contribution, eliminate some fiscal, or give privilege by the  government or public body for the local industries, it can be for domestic market or for export industry as well. for recuperate the state can charge extra tax which is call countervail duty. 

In order to asking for safeguard, doesn't need the prove of unfairness business activity nevertheless based on the economic of the member states, in another side, subsidies and dumpling, should be prove of illness activities, in order to prove that. in case of dumpling, usually requires difference price, the sale price is much cheaper around 20% etc. in the case of subsidies, based on article 3 of  the Agreement on Subsidies and Countervailing Measures, except as it regulated in the agreement on agriculture, subsidies are prohibited. 
As it state above, the world trade organization regulates protection for unfairness activities that may occurred, but some states members are preferring to resolve the problem by direct or bilateral negotiation with other states or the  states which cause the harm. This have been a practice for some time between the member of world trade organization. although this does not cover in any WTO agreement, to make it clear, WTO now prohibits the bilateral or direct approaches and the states members are forced to using the measures that available or regulate in the WTO body. as states in the WTO website "The agreement says members must not seek, take or maintain any voluntary export restraints, orderly marketing arrangements or any other similar measures on the export or the import side. The bilateral measures that were not modified to conform with the agreement were phased out at the end of 1998. Countries were allowed to keep one of these measures an extra year (until the end of 1999), but only the European Union — for restrictions on imports of cars from Japan — made use of this provision."
In my opinion, the prohibition of grey area is a wise decision, as regard of WTO as a place for resolving problem between the members, in addition for implementation of the agreements that bind the members states  and also to protect the developing countries from any disadvantages negotiation that may rise.  

Selasa, 28 April 2015

The principle of National treatment in ASEAN´s Agreement on Investment


I.  Introduction
Association of South East Asian Nations is an inter-governmental organization composed of ten member states from south east Asian region.
ASEAN was founded based on the Bangkok declaration, on 8 august 1967, and on 2007 came to strengthen their position as an international organization with legal personality, by creating the new constitution or fundamental law, which is the ASEAN Charter of 2007[1]. This charter aside of being the legal personality of the organization, it also serves as the fundamental instrument for ASEAN principles and goals, such as the free trade agreements and ASEAN economic community. On the economic field, ASEAN is focusing on free flow of goods, services and investments. The idea for the free flow of investment has actually started since 1987, with the ASEAN Agreement for the Promotion and Protection of Investments[2]. There are series of instruments for the implementation of free flow of investment such as the framework agreement on the ASEAN investment area of 1998, ASEAN comprehensive investment agreement, which, all together, aimed to achieve the goal of ASEAN Economic Community in 2015[3]. In summary, all the agreements regulate investments and dispute resolution issues.
In regard to the character of the investment, it has to be the direct investment with the exception of matters relating to the investments covered by other ASEAN agreements, such as the ASEAN framework agreement on services.[4] The government procurement, the service supplies by a governmental authority of a member state are also excluded. The international investment protection has a big challenge on its implementation in ASEAN. In addition, investment area has a lot of critical point that causes international infestation such as nationalization, conflict with the property of foreign investors, the flow of capital and taxation. Beyond that, a 2014 IIA report points that there are two types of challenges put by states members and faced by investors namely cancellation and allegation of violation of contracts, revocation or denial of licenses, which may be the reflection of the National Treatment Principle (NTP) in regard to the treatment between foreign and national investors. This NTP is likely to be a contradiction to the non – discrimination standard of GATT principle.  Since the agreement for the promotion and protection of investment of 1987, this clause has been stated[5], although the implementation is various based on the economic capacity of each member states[6].
II. Body
In regard with the article 9 of ASEAN Comprehensive agreement on investment, each state member may sign their reservation. The national treatment standard includes a wide range of items from the fully prohibited to with restriction principles. Some sector that are opened to foreign investor, for example, in Brunei Darusalam, the sole proprietorships and cooperative societies are only given to the citizen of Brunei; the Lao´s people Democratic Republic is not allowed foreign investor in sector manufacturing mining and quarrying collection of Guano; the same case happen in Cambodia, Malaysia, Philippines; and Vietnam are also not allowing some sector of mining and quarrying, Cambodia prohibits exploration of any kind of sands for export, while Malaysia on gemstone. The Philippines is only allowing exploration of mining and service incidental of mining in small-scale while Vietnam prohibits mining in oil, beside the sector of mining, oil and  gas, other sector such as foresty, EEZ explorations[7] also mostly close to the foreign investor. Activities and certain sector of manufacturing, fishery, agriculture, are mostly permitted with restriction in maximum equity of foreign investment, type of entrepreneur and certain requirement on registration and other administration license. In addition, in some members states national treatment is not given to the small and medium sized entrepreneurs, those member states are Indonesia, Philippines, Brunei Darusalam, Thailand, and Vietnam.
Beside those areas above, foreign expatriates, privatization, permanent residence and land ownership and usage also remain subjects of exclusion of the national treatment in some member states. Foreign expatriate is permitted in Singapore, while in Thailand, some openness are allowed by national instrument.  In Indonesia, Malaysia, Brunei Darusalam, Philippines, Thailand, Vietnam, concerning any obligation arising from the recognition of any natural person possessing the right of permanent residence is neither applying nor claimed upon Cambodia, Indonesia, Myanmar, Philippines, Thailand, and Vietnam. And regarding the ownership of land is not allowed in Singapore, Indonesia, Philippines, Laos, Cambodia, Malaysia, although it is possible to lease of land with limited and some requirement.
III. Conclusion
National treatment raises some of the most significant issues in the field of foreign direct investment. It stipulates formal equality between foreign and national investor. However, in practice national investor, especially those that could be identified as infant industries or infant entrepreneur, may be in an economically disadvantageous position by comparison with foreign investor, who may be economically powerful transactional corporations. Such economic asymmetry may require a degree of flexibility in the treatment of national investor, especially in developing countries, for instance through the granting of exception to national treatment and it is the fact that national treatment has not been implemented hundred per cent in ASEAN member states due to economic development of each member  state,  nevertheless it is important to underline that ASEAN keeps moving forward to realize free flow investment, and to achieve the goal of national treatment is not easy, this also stated in executive summary of United nations conference on trade agreement and development UNCTAD in1999 “the national treatment standard is perhaps the single most important standard of treatment enshrined in international investment agreement (IIAs). At the same time, it is perhaps the most difficult standard to achieve, as it touches upon economically (and politically) sensitive issues. In fact, no single country has so far seen itself in a position to grant national treatment without qualifications, especially when it comes to the establishment of an investment”.
 note: this article is made as a way for me to practice my writing and english skill 



[1] Based on article 3.
[2] this agreement was signed by five founding fathers of ASEAN and Brunei Darusalam, the first member who joined ASEAN on 7 january 1984
[3] article 1 of ASEAN comprehensive Investment agreement, Thailand, 26 February 2009. Stated that the objective of this agreement is to create a free and open investment regime in ASEAN in order to achieve the end goal of economic integration under the Asean Economic Comunity in accordance with the AEC blueprint. Through the following;
a.      progressive liberalisation of the investment regime of member states
b.      provision of enhanced protection to investors of all member stats and their investment
c.      improvement of transparency and predictability of investment rules, regulations and procedures conducive to increased investment among member states
d.     join promotion of the region as an integrated investment área
e.      cooperation to create favourable condition for investement by investor of a member state in the territory of the other member states
[4] Based on article 2 framework agreement on the ASEAN Investment Area.
[5] According to article 7.
[6] Malaysia is allowing fishery is EEZ with restriction and requirment.

Senin, 20 April 2015

Sekilas Tentang Komunitas Negara-Negara Berbahasa Portugues (CPLP)

Pada era globalisasi, hubungan internasional yang terjadi diantara negara-negara semakin kuat. baik melalui hubungan bilateral ataupun multilateral. tidak jarang negara-negara tersebut bergabung dalam suatu organisasi internasional. Perserikatan Bangsa-Bangsa sebagai contohnya yang telah di kenal luas sejah dulu. namun seiring dengan perkembangan waktu, teknologi dan semakin banyaknya negara-negara yang memproklamasikan kemerdekaan, semakin banyak pula organisasi-organisasi internasional. baik sebuah organisasi internasional seperti PBB, organisasi perdagangan Dunia, palang merah internasional, organisasi regional, seperti ASEAN, Uni Eropa, Uni Afrika, organisasi untuk kepentingan tertentu seperti kepentingan ekonomi, organisasi G-7, organisai G-20 dan serta organisai internasional berdasarkan bahasa yang sama, salah satunya adalah Comunidade dos Países da Língua Portuguesa (CPLP) yang dalam bahasa indonesia adalah Komunitas negara-negara berbahasa portugis. Organisasi ini mungkin agak asing untuk di dengar.  keinginan untuk didirikan organisasi ini telah ada sejak tahun 1983, sebagaimana keinginan tersebut disampaikan oleh menteri luar negeri portugal dalam sebuah pidatonya di Cabo Verde (merupakan salah satu negara bekas jajahan Portugal) dan pada tanggal 1989 diselenggarakan pertemuan pertama diantara kepala negara dan kepala pemerintah dari negara-negara berbahasa portugues, yang diantaranya adalah Portugal, Brasil, Mozambik, Cabo Verde, Guiné Bissau, São Tomé dan Principe, dan Anggola. pada pertemuan ini disepakati untuk dibentuknya sebuah institusi internasional bahasa portugues, dengan tujuan mengembangkan dan mempromosikan bahasa portugis. pada saat ini terdapat sembilan negara yang bergabung dalam organisasi ini yakni : Portugal, Brasil, Mozambik, Cabo Verde, Guiné Bissau, São Tomé dan Principe, Anggola, Timor Leste dan Guiné Equatorial. Guine Equtorial merupakan negara terakhir yang bergabung ke dalam CPLP pada tahun 2014. 
Pada tahun 1994 ketujuh menteri luar negeri dari masing-masing negara bertemu kembali dengan agenda untuk penyelenggaran Summit dengan tujuan pembuatan deklarasi pendirian organisasi. summit atau konferensi tingkat tinggi antara para kepala negara ini diselenggaran di Lisbon, Portugal dan tahun 1996 di selenggarakan Konferensi tingkat tingggi diantara kepala negara dan pemerintah CPLP yang juga merupakan tahun secara resmi berdirinya organisasi ini degan dasar hukumnya didirikannya berupa Deklarasi (Declaralçao Constituitiva) yang kemudian dengan serangkaian perubahan dengan disekapakati Estatutos da Comunidade.
CPLP memiliki tiga pilar pokok yakni : memperkuat hubungan intenasional para negara anggota dan keberdaanya di forum internasional, kerjasama di berbagai bidang terutama, kesehatan, pendidikan, science dan teknologi, pertahanan, agrikultur, adiministrasi publik, komunikasi, hukum, keamanan umum, budaya, olahraga dan komunikasi sosial, dan promosi dan penggunaan bahasa portugis.

untuk menunjang pengimplementasian dari pilar-pilar tersebut CPLP memiliki struktur organisasi yakni:
1. Konferensi kepala-kepala negara dan kepala-kepala pemerintahan CPLP (Conferência de Chefes de Estado e de Governo da CPLP)
merupakan organ tertinggi, para kepala negara dan atau kepala pemerintah bertemu setiap dua tahun dan setiap dua tahun itu pula di tentukan secara bergilir dianatara mereka siapa yang akan menjadi presiden dari CPLP untuk satu periode yakni (2 tahun) pada saat ini kursi kepresidenan CPLP ada ditangan Timor Leste.
2. Dewan Menteri (Conselho dos Ministros)
Terdiri para menteri luar negari dari masing-masing negara anggota, seperti halnya konferensi para kepala negara, dewan menteri memiliki struktur yang hampir sama. dewan menteri berwenang mengimplemanentasikan keputusan dari konferensi, memberikan proposal untuk kegiatan kepada konferensi, mengatur keuangan CPLP, dan lain sebagainya yang ditentukan dalam statuta. dewan menteri CPLP bertemu setiap satu tahun.
3. komite konsentrasi permanen (comissão concentração permanente)
komisi ini terdiri perwakilan tiap-tiap negara anggtoa, komisi ini bertugas mengikuti dan memastikan bahwa Sekretariat Eksekutif menjalankan keputusan-keputusan yang ditetapkan oleh organ-organ CPLP, serta IILP, yang merupakan institusi yang bertanggung jawab terhadap kegiatan-kegiatan terkait perkembangan dan penggunaan bahasa portugis.
komisi ini bertemu setiap sekali dalam sebulan dan termasuk dalam pertemuan ektraordinari pertemuan-pertemuan diluar itu yang dinggap diperlukan.
4. sekretariat eksekutif (secretariado executivo)
merupakan organ principal CPLP, berkewajiban melaksanakan keputusan-keputusan dari Konferensi, Dewan Menteri dan Komisi Konsentrasi Permanen, merancang dan memastikan pelaksanaan kegiata-kegitan CPLP, mengikuti eksekusi keputusan-keputusan pertemuan para menteri dan wewenang lain.

selain keempat ogran tersebut di atas terdapat pula organ lain yaitu:
1. Instituisi Internasioanl Bahasa Portugis ( Instituto Internacional de Língua Portuguesa)
2. Parlamen CPLP ( Assembléia parlamentar da CPLP)
3. pertemuan focal point untuk kerjasama ( Reunios dos Pontos Focais de Cooperação)
4. pertemuan para Menteri ( Reunioes Ministeriais)

keputusan-keputusan dalam CPLP diambil secara konsensi dan kuorum untuk melaksanakan pertemuan-pertemuan dibutuhkan sekurang-kurangnya enam negara anggota.

selain negara-negara yang pada prinsipnya merupakan negara-negara dengan bahasa nasional yang sama yakni bahasa Portugis, CPLP juga membuka pintu bagi kerjasama dengan negara-negara bukan berbahasa portugis (Observador Associado) ataupun organisasi-organisasi (Observador Consultivo) melalui program yang disebut dengan observer, pada saat ini terdapat delapan negara yang bergabung menjadi observer CPLP yaitu diantaranya Georgia, jepang, Senegal, Turki, Mauritus dan Namimbia dan terdapat lebih dari 50 Observador Consultivo.  untuk menjadi observer tidak diharuskan suatu negara atau organisasi berbahasa portugis, namun merupakan negara demokrasi, terdapat praktek pemerintahan yang baik, menjunjung tinggi hak asasi manusia, mempromosikan dan menggunakan bahasa portugis, dan didalam program kerja pemerintahnya tujuan yang sama dengan CPLP. dalam penggunaan bahasa portugis disini adalah salah satunya di temukan institusi-isntitusi yang memberikan kursus dalam bahasa portugis atau pemerintahnya memberikan program pertukaran pelajar.