Juridical Comparative Analysis Anti Dumping Policy Between Indonesia And The Philippines

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Introduction

Dumping is a widespread practice in international trade where goods are sold in foreign markets at lower prices than their normal value. This unfair trade practice can harm the market and local producers in the importing country. Since the establishment of the World Trade Organization (WTO) in 1994 and an antidumping agreement based on Article VI GATT, WTO member countries have used antidumping import duty instruments to face adverse trade practices. Indonesia and the Philippines, as members of the WTO who have ratified GATT-WTO provisions, have the obligation to comply with all applicable provisions and adjust their national laws and regulations.

In this analysis, we will discuss the comparison of antidumping policies in both countries, especially in determining normal value, material losses, and domestic industry protection. The comparison will highlight the similarities and differences in law enforcement in both countries, caused by differences in the interpretation of their respective national provisions and interests.

Equations and Differences of Antidumping Policy

Based on research conducted, several similarities and differences in antidumping policies between Indonesia and the Philippines were found.

Similarities

The two countries refer to the antidumping agreement in determining normal value, material losses, and domestic industry protection. Both are committed to protecting the local market from harmful dumping practices.

Differences

  1. Normal Value Determination: Antidumping policy in Indonesia does not regulate the calculation of export prices based on Cost, Insurance, and Freight (CIF) or Free on Board (FOB). Meanwhile, the Philippines is more structured in this case by regulating the calculation method in more detail.

  2. Factors that Affect Normal Value: Indonesia does not explicitly regulate factors such as the exchange rate in determining the normal value, while the Philippines takes into account these factors.

  3. Domestic Industry Protection: The Philippines regulates domestic industry protection more comprehensively than Indonesia.

Suggestions for Antidumping Policies in Indonesia

Based on the analysis conducted, there are several suggestions to increase antidumping policies in Indonesia. First, Indonesia should set more detailed regulations related to the calculation of export prices based on the FOB or CIF method. In addition, considerations regarding the exchange rate of currencies must also be clearly regulated. Special relations between producers and exporters that cannot be categorized as domestic industries must be further explored in policies. Finally, the Indonesian government is advised to formulate a separate law that regulates comprehensive antidumping.

With more precise policy adjustments, it is hoped that Indonesia can effectively protect the domestic industry while remaining committed to the principles of fair international trade.

Conclusion

In conclusion, the comparison of antidumping policies between Indonesia and the Philippines highlights the similarities and differences in law enforcement in both countries. While both countries refer to the antidumping agreement in determining normal value, material losses, and domestic industry protection, there are differences in the regulation of normal value determination, factors that affect normal value, and domestic industry protection. Based on the analysis conducted, several suggestions are made to increase antidumping policies in Indonesia, including setting more detailed regulations related to the calculation of export prices, considering the exchange rate of currencies, and formulating a separate law that regulates comprehensive antidumping.

Recommendations for Future Research

Future research should focus on the implementation of antidumping policies in Indonesia and the Philippines, including the impact of these policies on domestic industries and the effectiveness of these policies in protecting the local market from harmful dumping practices. Additionally, research should be conducted on the role of the exchange rate in determining normal value and the impact of special relations between producers and exporters on domestic industry protection.

Limitations of the Study

This study has several limitations. First, the analysis is based on a limited number of cases and may not be representative of the broader context of antidumping policies in Indonesia and the Philippines. Second, the study relies on secondary data and may not capture the nuances of antidumping policies in both countries. Finally, the study does not consider the impact of antidumping policies on other stakeholders, including consumers and exporters.

Implications for Policy and Practice

The findings of this study have several implications for policy and practice. First, the study highlights the importance of setting clear and detailed regulations related to the calculation of export prices and the consideration of exchange rates in determining normal value. Second, the study emphasizes the need for comprehensive domestic industry protection policies that take into account the special relations between producers and exporters. Finally, the study suggests that the Indonesian government should formulate a separate law that regulates comprehensive antidumping.

Conclusion

In conclusion, this study provides a comprehensive analysis of antidumping policies in Indonesia and the Philippines. The study highlights the similarities and differences in law enforcement in both countries and provides several suggestions for increasing antidumping policies in Indonesia. The study also emphasizes the importance of setting clear and detailed regulations related to the calculation of export prices and the consideration of exchange rates in determining normal value. Finally, the study suggests that the Indonesian government should formulate a separate law that regulates comprehensive antidumping.

Q1: What is dumping in international trade?

A1: Dumping is the practice of selling goods in foreign markets at lower prices than their normal value. This often means the price of these goods is cheaper than prices in the country of origin or prices in other countries.

Q2: Why is dumping considered an unfair trade practice?

A2: Dumping is considered an unfair trade practice because it can harm the market and local producers in the importing country. It can also lead to a loss of market share and revenue for local producers.

Q3: What is the role of the World Trade Organization (WTO) in addressing dumping?

A3: The WTO plays a crucial role in addressing dumping through the implementation of antidumping agreements based on Article VI GATT. WTO member countries can use antidumping import duty instruments to face adverse trade practices.

Q4: What are the similarities and differences in antidumping policies between Indonesia and the Philippines?

A4: The two countries refer to the antidumping agreement in determining normal value, material losses, and domestic industry protection. However, there are differences in the regulation of normal value determination, factors that affect normal value, and domestic industry protection.

Q5: What are the suggestions for increasing antidumping policies in Indonesia?

A5: The suggestions include setting more detailed regulations related to the calculation of export prices based on the FOB or CIF method, considering the exchange rate of currencies, and formulating a separate law that regulates comprehensive antidumping.

Q6: What are the implications of this study for policy and practice?

A6: The study highlights the importance of setting clear and detailed regulations related to the calculation of export prices and the consideration of exchange rates in determining normal value. It also emphasizes the need for comprehensive domestic industry protection policies that take into account the special relations between producers and exporters.

Q7: What are the limitations of this study?

A7: The study has several limitations, including a limited number of cases, reliance on secondary data, and lack of consideration of the impact of antidumping policies on other stakeholders.

Q8: What are the recommendations for future research?

A8: Future research should focus on the implementation of antidumping policies in Indonesia and the Philippines, including the impact of these policies on domestic industries and the effectiveness of these policies in protecting the local market from harmful dumping practices.

Q9: What is the significance of this study in the context of international trade?

A9: This study provides a comprehensive analysis of antidumping policies in Indonesia and the Philippines, highlighting the similarities and differences in law enforcement in both countries. It also provides suggestions for increasing antidumping policies in Indonesia and emphasizes the importance of setting clear and detailed regulations related to the calculation of export prices and the consideration of exchange rates in determining normal value.

Q10: What are the potential implications of this study for policymakers and practitioners?

A10: The study has several implications for policymakers and practitioners, including the need to set clear and detailed regulations related to the calculation of export prices and the consideration of exchange rates in determining normal value. It also emphasizes the importance of comprehensive domestic industry protection policies that take into account the special relations between producers and exporters.