ENVIRONMENTAL CONCERN UNDER INDONESIA’S PREFERENTIAL TRADE AGREEMENTS (PTAs)

I Gusti Ngurah Parikesit Widiatedja

Abstract

International trade has resulted positive impacts, such as alleviating poverty and increasing jobs. All countries then start concluding trade agreements multilaterally, regionally and bilaterally. The existence of preferential trade agreements is increasingly significant due to the deadlock of multilateral trade agreements. Although providing benefits, international trade has adversely affected environment. Some international treaties suggest how countries should include environmental concern in their PTAs. Unlike traditional PTAs, most of modern PTAs have incorporated environmental concern, reconciling the goal of trade liberalization and environmental protection. In Indonesia, there is a link between international trade and environmental harm. This article aims to show the existing Indonesia’s PTAs, analysing how Indonesia has put, and how it should put environmental concern in its PTAs. This article argues that only a few Indonesia’s PTAs have incorporated environmental concern in their provisions. Moreover, when they include environmental concern, there is no further elaboration on how this process should be undertaken. Compare to other existing PTAs, Indonesia should start incorporating environmental concern in its PTAs, and then allow the right of government to impose protective measure in order to preserve environment. 

Keywords

Environmental Concern, Preferential Trade Agreements Indonesia.

Full Text:

PDF

References

Books:

Anderson, Kym, et al (eds). (2009), Indonesia in A Reforming World Economy:

Effects on Agriculture, Trade and the Environment. Adelaide: The University

of Adelaide Press.

Bethlehem, Daniel, et al (eds). (2009). The Oxford Handbook of International Trade

Law. Oxford: Oxford University Press.

Daniel Bodansky, Daniel, and Lawrence, Jessica C,’Trade and Environment’ in

Daniel Bethlehem et al (eds). (2009). The Oxford Handbook of International

Trade Law. Oxford: Oxford University Press.

Dür, Andreas and Elsig, Manfred. (2015). Trade Cooperation: The Purpose,

Design and Effects of Preferential Trade Agreements. Cambridge: Cambridge

University Press.

Fakhri, Michael. (2014). Sugar and the Making of International Trade Law.

Cambridge: Cambridge University Press.

Huwart, Jean-Yves, and Verdier, Loïc. (2013). Economic Globalisation:Origins and Consequences. Paris: OECD.

Lester, Simon and Mercurio, Bryan (eds). (2009). Bilateral and Regional Trade Agreements:Commentary and Analysis. Cambridge: Cambridge University Press.

Muchlinski, Peter, Ortino, Federico, and Schreuer, Christoph (eds). (2008). The Oxford Handbook of International Investment Law. Oxford: Oxford University Press.

Nellemann, Christian, et al. (2007). The Last Stand of the Orangutan – State of Emergency: Illegal Logging, Fire and Palm Oil in Indonesia’s National Parks. Geneva: UNEP.

The Organization for Economic Co-operation and Development. (2012). The OECD Environmental Outlook to 2050: The Consequences of Inaction. Paris: OECD.

The Organization for Economic Co-operation and Development. (2012). OECD Reviews of Regulatory Reform Indonesia: Market Openness. Paris: OECD.

The Organisation for Economic Cooperation and Development. (2016). OECD Economic Surveys: Indonesia, Paris: OECD.

United Nations Conference on Trade and Development. (2013). Trade and

Environment Review 2013: Wake Up Before It Is Too Late. Geneva: UNCTAD.

United Nations Environment Programme. (2016). Environment, Religion and Culture in the Context of the 2030 Agenda for Sustainable Development. Geneva: UNEP.

United Nations Environment Programme. (2005). Integrated Assessment of the Impact of Trade Liberalization: A Country Study on the Indonesian Rice Sector. Geneva: UNEP.

Wich, Serge et al (eds). (2011). Orangutans and the Economics of Sustainable Forest Management in Sumatra. Geneva: UNEP.

World Trade Organisation. (2011). World Trade Report 2011: The WTO and

Preferential Trade Agreements: From Co-existence to Coherence. Geneva:

WTO.

Widiatedja, I Gusti Ngurah Parikesit. (2011). Kebijakan Liberalisasi Pariwisata: Konstruksi Konsep, Ragam Masalah dan ALternatif Solusi. Denpasar: Udayana University Press.

Journals:

Berglund, Abraham. (1935). The Reciprocal Trade Agreements Act of 1934,” The

American Economic Review 25 (3) Am. Econ. Rev. 414.

Chornyi, Vasyl, Marianna Nerushay and Crawford, Jo-Ann. (2016). A Survey of

Investment Provisions in Regional Trade Agreements. WTO Working Paper

ERSD, 14 July 2016.

Dean, Judith M, Lovely, Mary E, and Wang, Hua. (2005). Are Foreign Investors

Attracted to Weak Environmental Regulations? Evaluating the Evidence from

China. World Bank Policy Research Working Paper 3505, February 2005.

Hermosilla, Arnoldo Contreras-, Doornbosch, Richard and Lodge, Michael. (2007).

The Economics of Illegal Logging and Associated Trade”, Round Table on

Sustainable Development, OECD.

I Gusti Ngurah Parikesit Widiatedja. (2017). The Lack of the Environmental Concern in Indonesia’s Bilateral Investment Treaties”, 3 (3) Hasanudin Law Review 231.

Kukuh Kurniawan. (2011). The Economic, Environmental, and Geopolitical Impacts of the ASEAN-China Free Trade Area (ACFTA) on Indonesia. Master Thesis of the Faculty of Technology, Policy, and Management, Delft University of Technology.

Kowalski,Przemyslaw, Kowalski, Max Büge, P, and M. Büge. (2013). Assessing the Trade-Related Sources of Productivity Growth in Emerging Economies. OECD Trade Policy Papers.

Lesher, Molly and Miroudot, Sébastien. (2006). Analysis of the Economic Impact of Investment Provisions in Regional Trade Agreements. OECD Trade Policy Working Paper Number 36, 11 July 2006.

Lewis, Meredith Kolsky. (2016). The TPP as a Pathway Towards Asia-Pacific

Integration”, Paper Presented at Conference The Age of Mega-Regionals: TPP and Regulatory Autonomy in IEL. Melbourne Law School, 19-20 May 2016.

Robalino, Juan, and Herrera, Luis Diego. (2010). Trade and Deforestation: A

Literature Review. Staff Working Paper ERSD-2010-04, WTO, January 2010.

Shanty Oktavilia and Firmansyah. (2016). The Relationships of environmental Degradation and Trade Openness in Indonesia. 6 (S6) International Journal of Economics and Financial Issues 129.

Tienhaara, Kyla. (2011). Regulatory Chill in a Warming World: The Threat to

Climate Policy Posed by Investor-State Dispute Settlement. 7(2) Transnational Environmental Law 229.

The Organization for Economic Cooperation and Development, “The Impact of Trade Liberalisation on Jobs and Growth: Technical Note”, OECD Trade

Policy Papers, 2011

Legal Documents:

International Treaty:

Agreement on ASEAN Preferential Trading Arrangements, signed 24 February 1977

(entered into force 25 August 1977).

Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the

ASEAN Free Trade Area (AFTA), signed 28 January 1992 (entered into force

January 1992).

Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area, signed

February 2009 (entered into force 1 July 2009) (AANZFTA).

Agreement between the Republic of Indonesia and Japan for an Economic Partnership,

signed 20 August 2007 (entered into force 1 July 2008) (ASEAN-Japan FTA).

Agreement Establishing the ASEAN–Australia–New Zealand Free Trade Area, opened

for signature 27 February 2009, [2010] ATS 1(entered into force 1 January

(ASEAN–Australia–New Zealand FTA).

Agreement between the European Union and Japan for an Economic Partnership,

signed 17 July 2018 (Japan-EU FTA).

ASEAN Framework Agreement on Services, signed 15 December 1995.

ASEAN Trade in Goods Agreement, signed 26 February 2009 (entered into force 30

April 2010) (ATIGA).

Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community

by 2015, signed 13 January 2007 (entered into force 13 January 2007) (Bali

Concord II).

Comprehensive Economic and Trade Agreement between Canada, of the one part, and

the European Union and its Member States, signed 30 October 2016 (CETA)

Declaration of the United Nations Conference on Environment and Development,

UN Doc A/CONF.151/26 (14 June 1992) (Rio Declaration).

Declaration on the ASEAN Economic Community Blueprint, signed 20 November

(entered into force 20 November 2007) (AEC Blueprint).

Declaration of ASEAN Concord II signed 7 October 2003 (entered into force 7

October 2003).

Framework Agreement on Trade and Investment Between The Ministry of Trade

of the RI and the Ministry of National Planning and Economic Development

of The Republic of the Union of Myanmar, signed 3 April 2013 (entered into

force 3 April 2013)

Framework Agreement on Comprehensive Economic Cooperation Among the

Governments of the Member Countries of the Association of Southeast Asian Nations and the Republic of Korea, signed 13 December 2005 (entered into force 1 July 2006) (ASEAN-Korea FTA).

Framework Agreement on Comprehensive Economic Cooperation Between the Republic of India and the Association of Southeast Asian Nations, signed 8 October 2003 (entered into force 1 July 2004) (ASEAN-India FTA).

Framework Agreement on Comprehensive Economic Co-operation Between the Association of South East Asian Nations and the People’s Republic of China, signed 4 November 2002 (entered into force 1 July 2003) (ASEAN-China FTA).

Free Trade Agreement between the Government of Australia and the Government of the People’s Republic of China, signed 17 June 2015, [2015] ATS 15 (entered into forced 20 December 2015) (Australia-China FTA).

Long-term Trade Agreement between the Republic of Indonesia and the People’s Republic of Bulgaria, signed 5 May 1961.

Marrakesh Agreement Establishing the World Trade Organization, opened for signature 15 April 1994, 1867 UNTS 3 (entered into force 1 January 1995)

Preamble (The WTO Agreement).

North American Free Trade Agreement, signed 17 December 1992, [1994] CTS 2 (entered into force 1 January 1994), the preamble (NAFTA).

Trans-Pacific Strategic Economic Partnership, Brunei Darussalam–Chile–New Zealand–Singapore, signed 18 July 2005 (Brunei Darussalam signed 2 August 2005) (entered into force 28 May 2006 (New Zealand and Singapore), 12 July 2006 (Brunei Darussalam), 8 November 2006 (Chile)).

Trade and Investment Framework Arrangement between the Association of Southeast Asian Nations and the United States of America, signed 25 August 2006 (entered into force 25 August 2006) the Preamble (US-ASEAN TIFA).

Trade Agreement between the Government of the Republic of Indonesia and the

Government of the Kingdom of Thailand, signed 16 November 2011 (entered

into force 3 August 2012).

Trade Agreement between the Government of the Republic of Indonesia and the

Government of the Republic of Uzbekistan, signed 13 May 2008 (entered into

force 30 September 2009).

Trade Agreement between the Government of the Republic of Indonesia and the

Government of the People’s Republic of Bangladesh, signed 24 January 2004.

Treaty Establishing a Common Market between the Argentine Republic, the Federal

Republic of Brazil, the Republic of Paraguay and the Eastern Republic of

Uruguay, signed 26 March 1991, entered Into Force 29 November 1991

(MERCOSUR).

Treaty of Friendship between the Kingdom of Egypt and the Republic of Indonesia,

signed 10 June 1947.

Treaty of Friendship between the Republic of Indonesia and the Republic of the

Philippines, signed 21 June 1951 (entered into force 20 November 1953).

Trade Agreement between the Republic of Indonesia and Japan, signed 7 August

(entered into force 7 August 1952).

Trade Agreement between the Republic of Indonesia and the Republic of India, signed

January 1953 (entered into force 30 January 1953).

Trade Agreement between the Republic of Indonesia and the People’s Republic of

China, signed 30 November 1953.

Trade Agreement between the Government of the Republic Indonesia and the

Government of the Commonwealth of Australia, signed 14 November 1972

(entered into force 14 November 1972).

Trade Agreement between the Government of the Republic of Indonesia and the Government of the Republic of the Philippines, signed 8 August 1974 (entered into force 8 August 1974).

Trade Agreement between the Government of the Republic of Indonesia and the Government of the Socialist Republic of Romania, signed 8 March 1975 (entered into force 8 March 1975).

Trade and Payments Agreement between the Republic of Indonesia and the Rumanian People’s Republic, signed 27 November 1956 (entered into force 27 November 1956).

The agreement between The Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation(EFTAStates) and Singapore, signed 26 June 2002, the preamble. (EFTA States-Singapore PTA).

Refbacks

  • There are currently no refbacks.