Gunawan Widjaja, Enna Budiman, Wagiman

IMPLEMENTATION OF MINISTER OF TRADE REGULATION NUMBER 8 OF 2024 CONCERNING IMPORT PROHIBITIONS AND RESTRICTIONS AS ONE OF THE FACTORS IN THE IMPOSITION OF HIGH RECIPROCAL TARIFFS BY THE UNITED STATES

Introduction

Implementation of minister of trade regulation number 8 of 2024 concerning import prohibitions and restrictions as one of the factors in the imposition of high reciprocal tariffs by the united states. Examine Indonesia's Permendag 8/2024 import restrictions & US reciprocal tariffs. Analyzes WTO compliance, GATT 1994, DSU, and international trade law implications for both.

Abstract

Regulation of the Minister of Trade of the Republic of Indonesia Number 8 of 2024 (Permendag 8/2024) is a significant change in import policy, including certain import prohibitions and restrictions. The implementation of this regulation has an impact on increasing the flow of imported goods to Indonesia, but has also drawn attention from the United States. The US government responded to this policy by implementing high reciprocal import tariffs on Indonesian products as a retaliatory measure. This study examines the normative-juridical content of Permendag 8/2024 along with its impact on international trade, as well as the United States' legal response through reciprocal tariffs. The analysis focuses on the conformity of the policies of the two countries with the legal provisions of the World Trade Organization (WTO), especially the General Agreement on Tariffs and Trade 1994 (GATT 1994) and the Dispute Settlement Understanding (DSU). Through the normative-juridical research method, this paper finds indications of violations of WTO principles in Indonesian policies as well as unilateral US retaliatory actions. Trade dispute simulations indicate that settlement options may be pursued through diplomacy and WTO dispute resolution mechanisms rather than unilateral retaliatory actions that violate the DSU. This in-depth study is expected to provide a comprehensive understanding of the legal implications of Indonesia's trade policy and the United States' reciprocal response within the framework of international trade law.

Review

This paper presents a timely and critical examination of the trade friction between Indonesia and the United States, stemming from Indonesia's Minister of Trade Regulation Number 8 of 2024 (Permendag 8/2024). The abstract clearly outlines the regulation's significant shift in import policy, introducing prohibitions and restrictions that have, in turn, prompted a retaliatory response from the US in the form of high reciprocal tariffs. The study effectively frames this bilateral issue within the broader context of international trade law, highlighting the immediate and far-reaching implications of such national policies on global economic relations. The choice to focus on this particular regulation and its international repercussions is highly relevant given current global trade protectionist sentiments. Employing a normative-juridical research methodology, the study rigorously analyzes the conformity of both Permendag 8/2024 and the US's reciprocal tariffs with the legal provisions of the World Trade Organization (WTO), particularly the General Agreement on Tariffs and Trade 1994 (GATT 1994) and the Dispute Settlement Understanding (DSU). A key strength of this approach is its ability to dissect the legal nuances of each country's actions, leading to findings that indicate potential violations of WTO principles by *both* Indonesian policy and unilateral US retaliatory measures. This balanced assessment is crucial for a comprehensive understanding of the dispute and adds significant academic value by avoiding a biased interpretation. The paper's concluding discussion on trade dispute simulations and proposed settlement options offers a practical and constructive contribution to the field. By advocating for diplomacy and WTO dispute resolution mechanisms over unilateral actions that contravene the DSU, the study not only identifies legal infractions but also charts a path forward for resolving such international trade conflicts. This in-depth analysis is poised to provide a valuable resource for policymakers, legal scholars, and trade experts seeking a clearer understanding of the legal ramifications of national trade policies and their impact within the intricate framework of international trade law.

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