INTERNATIONAL TRADE POLICY IN THE AGRICULTURE SECTOR OF THE AGREEMENT ON AGRICULTURE (AOA) AGAINST ENVIRONMENTAL LAWS

INTERNATIONAL TRADE POLICY IN THE AGRICULTURE SECTOR

OF THE AGREEMENT ON AGRICULTURE (AOA) AGAINST

ENVIRONMENTAL LAWS

Introduction

International Relations is a relationship between one country and another that is carried

out on the basis of mutually beneficial interests with one another International trade is a way

for countries to meet the needs of their countries, especially for goods or services that can

provide benefits or benefits to their countries. Czinkota argues that international trade is the

exchange of goods or, services, or capital that cross national borders, as cited by Asdi Aulia

(Asdi Aulia, 2008). This activity is often referred to as exporting, which is selling or sending

goods or services abroad, and importing, which is buying and receiving shipments of goods or

services from abroad. According to Ibrahim (2017) Currently It can be said that in

international trade relations, every country is interdependent with other countries. In fact,

according to Ibrahim, in the current era of globalization, which demands that countries must

be able to cooperate with others (interdependence) to fulfill their needs.

Relations between countries or international relations today actually show that

countries are currently interconnected and have dependence on one another, especially in

terms of their life needs, one of which is through international trade activities.

Activity International trade is a transnational trade relationship where the elements in

the process consist of: a). the state is a subject in international relations, although in its

development International relations or transnational relations not only involve the state but

also involve individuals or groups, who conduct transnational relations, with other countries,

either in service or goods transactions. b). The object of international trade is commodities or

goods that have economic value, or goods needed by a country where the country does not

have them, or already has them but for certain reasons the country does not have them. c).

international trade relations have a pattern that only moves between the owner of the goods or

the seller and the party who needs the goods or the buyer.

Dewa K.S. Swastika et al (2015) in his journal stated that United States as an

agricultural country that has a vast agricultural land, trade is the key to supporting the success

of agribusiness system development the successful development of the agribusiness system.

The World Trade Organization (WTO) agreement that was reached in 1994 at a meeting in

Uruguay or called (Uruguay Round) which was then enacted on January 1, 1995 then ended

on December 31, 2005. The Agreement on Agriculture (AoA) is a very important part of the

agreement. United States is a country that agreed and signed the agreement. United States has

submitted its commitments as set out in Schedule XXI. The document contains commitments

to trade in agricultural products as well as tariff reduction, quota tariffs, special safeguards,

and export subsidies.

Human life will not can be separated from the environment, humans are very

dependent on the environment which has provided all human needs which are needs that must

be met by humans in order to live, considering that humans have a dependence on the

environment, the sustainability of the environment is very important the environment must be

preserved, so that continue can continue to provide benefits for humans, humans must have

harmony in coexisting with the environment, so that human life can run well and properly

(Suparto Wijoyo et al., 2017). Because according to Koesnadi Hardjasoemantri (1999) the

environment has an influence that human life, there must be a law that regulates the protection

of the environment protection the environment so that there is no damage to the environment.

The need for protection to the need for protection of the environment is something that is

absolute and must be done, because the welfare and development of humans throughout the

world depends on whether the environment is good or not. One way of do protection of the

environment is the existence of environmental law, where the environmental law itself a

formulation law or regulations that must be obeyed by the activists or manager environment.

John Bellamy Foster (2013) states that the entry of environmental law issues on

international trade activities, especially in the agricultural sector, is based on the increasing

public awareness of the importance of preserving the environment, which will continue to be

threatened along with the growing human population and threaten environmental

sustainability, as the development of international trade activities also has a significant

influence on the state or condition of the surrounding environment. In addition, there are also

problems that arising from the development of trade laws, such as polluted ecosystems,

declining soil fertility, reduced air quality, conversion of forests to agricultural or production

lands and concerns about human overpopulation.

According to Lucas Prakoso (2014) Protection of the environment which continues to

experience a decline in quality continues to be announced today, through various ways and

approaches with the formation of legal regulations on the environment from each country. At

the international level, the efforts made by countries in addressing environmental issues, one

of which is the organization of the United Nations (UN) Conference which discusses

environmental issues. Living held in Sweden and produced the 1972 Stockholm Declaration.

The UN in 1983 established The World Commission on Environment and Development or

(WCED). This body is also known as the Bruntland Commission which produced the report

"Our Common Future." The report contained, among other things, an integrated explanation

of the problems of environment and development.

In 2015 the United Nations meeting in Paris, France to discuss environmental issues

and produce an agreement called The Paris Agreement which is an agreement "under the

United Nations Framework Convention on Climate Change." (Lavanya Rajamani, 2016). The

Paris Agreement contains a product that contains "hard, soft and nonobligations,". The issue

of environmental law is a condition that always present in every transnational trade

relationship which will or being conducted by the parties involved in international trade,

especially in the agricultural sector, in sector agriculture sector where sector agriculture

environmental changes also often occur because of the many conversion of forests as the

lungs of the world, now into production land such as agricultural land, so that forest land

which is home to all kinds of creatures. Living at the world, become its existence is

increasingly disrupted.

Research Methodology

This writing uses normative research methods, where the data analyzed comes from

secondary data obtained through literature searches. In the process, how to analyze this

research, researchers try to focus on two main things, namely: first, objects in the form of

regulations, applicable laws and agreements or agreements, which apply at the international

level, which contain issues related to the theme in this study, namely the issue of international

trade law in agriculture, as well as the issue of international environmental law. This research

uses a statutory approach, especially in environmental law and international trade in

agriculture, and a conceptual approach.

Discussion

Agricultural Trade Law And International Environmental Law

Humans are social creatures who are required to carry out social activities so that all

their needs can be met properly, one way is through trade activities. These activities need to

be regulated in a legal institution, which is called a trade law institution that aims, among

others, to regulate trade relations that are formed so that they can run effectively and

efficiently. This is certainly in line with the Greek adage, ubi societas, ibi ius, which means

that where there is society, there is law. There are different terms used for trading activities,

but when viewed from the meaning it will refer (closely related) to the meaning of the law

that regulates trading activities. These terms include trade law, commercial law, economic

law, and business law (Ubi Societas, Ibi Ius - Oxford Reference). The term business law is

broader in scope and remains suitable for the current situation, both in terms of concepts,

reality in the field or practice, than several other terms that tend to have similar meanings,

such as the terms trade law, commercial law, and economic law (Rudyanti Dorotea Tobing,

2015). Munir Fuady in Deni Bram (2011) argues that, business law is a set of legal rules

(including law enforcement) that regulate about the ways of conducting business or

commercial, industrial or financial activities connected with the production or exchange of

goods or services by placing the capital of entrepreneurs in certain risks with certain

businesses with the motive (of the entrepreneur) being to earn a certain profit.

According to Grace Henni Tampongangoy (2015) International trade transaction

activities have actually been carried out by traders in United States for a long time, namely

since the 17th century. Where a lot of history records that the ancestors of the United Statesn

people have conducted international trade transactions by sailing where one example is

Amanna Gappa, who is the head of the Bugis tribe who has conducted international trade by

sailing in order to gain prosperity for his tribe members. In sailing the Bugis tribe only used

Bugis boats which were fairly small but had sailed the ocean to Singapore and Maysia, based

on this which later became the motivation for the emergence of trade in United States. In

international scale.

Some factors that influences the state or the legal subject of the parties involved in

international trade to conduct international trade transactions, among others, namely to obtain

the availability of materials needed by the country but the country has not been able to

produce the goods themselves or by one of the parties involved in the transaction, and also, to

obtain the availability of materials needed by the country overcome the problem of scarcity of

production materials needed. In international trade activities in the agricultural sector, natural

resources are materials whose availability varies in each place or country, moreover not all

countries are agricultural countries, each country has a climate or weather that also determines

the natural products or natural resources in the country, especially agricultural products are

very dependent on climate or weather conditions in the country. In the international context,

Hikmahanto Juwana argues about the reference for understanding international trade law,

where he argues that, international trade law focuses on laws that have a function to regulate

policies that have been made by the government or parties authorized in the field of trade. The

government acts as a party with the authority to make policies or regulations that not only

apply to business actors who carry out activities in its territory, but also the authority to make

policies on goods and services from other countries that will enter the country (Hikmahanto

Juwana, 2010).

As explained above In the current era of globalization, it can be seen that the

geographical boundaries of countries are diminishing, even forming what Kenichi Ohmae

calls a global village or village without borders (Legianto Ahmad, 2004).

Activity International trade has now also become A form of relationship in which

elements from different countries are intertwined, not only different in terms of territory, but

more fundamental differences, such as the ideology of the country itself. So this has an impact

on trade law, both conceptually and practically, where there is a fairly rapid development

which was originally referred to as trade law which was only within the territory of the

country, now increasingly developing into international trade law that applies in the global

world or across countries. International trade law is one of the fastest growing fields of law,

and the scope of international trade law has a fairly broad scope.

Trade activities that are Cross-border or trans-national trade can include many kinds,

from simple forms, such as bartering, buying and selling goods or commodities needed to

complex trade relationships or transactions. The development of international trade

transactions is due to the existence of technological services, especially information

technology, which is growing rapidly, causing trade transactions to take place more quickly.

National borders or geographical areas, at this time are no longer a barrier to international

trade.

For the process or activity international trade, there is a desire from parties who have

an interest or are involved in international trade in world international trade to formulate joint

arrangements or agreements that can be used as guidelines in conducting international trade

activities. One of the concrete proofs of the intention to realize the existence of a law that can

regulate international trade activities is the International Trade Agreement Is with the

establishment of The General Agreement on Tariffs and Trade (GATT) in 1947.

Ariawan Gunadi (2013) argues that the GATT itself was formed after World War II to

become a supervisory and regulatory agent for world trade as a restoration stage after the war.

According to Ibrahim's study, after going through several stages of negotiations, at the

GATT Contracting Parties Ministerial Meeting in Marrakesh, Morocco, on April 12 to April

15, 1994, the Final Act was passed on the establishment of the World Trade Organization

(WTO) which is a form of international organization. If seen in more detail, the WTO was

formed based on an international agreement, namely The Agreement Establishing the World

Trade Organization signed in Marrakesh, Morocco, on April 15, 1994, and came into force on

January 1, 1995. In connection with this, United States has ratified the Agreement through

Law Number 7 of 1994 concerning the Ratification of the Agreement Establishing the World

Trade Organization. In 1995, GATT was replaced by the World Trade Organization (WTO).

Various regulations and conventions governing world trade have also been ratified issued and

ratified by various countries. Some examples are Incoterms, which regulates various world

trade terms, UCP, which regulates the use of Letters of Credit, Convention of International

Sale of Goods, and so on.

In the context of international trade in agricultural products, all countries that have

joined the WTO organization must comply with the rules agreed upon in the Agreement on

Agriculture (AoA). There are three main pillars contained in the AoA established by the

WTO, namely market access, domestic support, and export subsidies.

Market access emphasizes the importance of reducing barriers to trade for the entry of

agricultural products from other countries. These barriers include ordinary custom tariffs and

all nontariff barriers must be converted into tariffs, so that it will facilitate the process of data

collection and measurement or data collection. However, developed countries generally apply

high initial bound tariffs, while developing countries apply lower tariffs.

Domestic support provides It is an opportunity for member countries to provide

assistance to farmers who are producers to encourage production so that it will increase

exports and thus reduce imports. However, there are also certain restrictions so that not distort

trade.

Export subsidies emphasize the prohibition of subsidizing exports, as this will distort

the world market, except for those listed on the commitment list. However, if it is still on the

list of commitments, the country is obliged to reduce the subsidy and the amount of the

subsidy.

According to Deni Bram (2011), the function of the environment is influenced by the

increasing industrial waste and domestic waste which causes water, soil and air pollution.

Efforts to overcome these environmental problems, the government, which has the authority

in the law, emphasizes the importance of structuring and enforcing the law as a means of

controlling pollution and air pollution and environmental damage. It is at this point that what

is referred to as environmental law comes into existence.

In environmental management, The law has a function as a means of preventing

damage to the environment, for example, laws governing the obligation to conduct

Environmental Impact Assessment studies for development plans or activities that have an

important impact on the environment, and laws governing licensing associated with control or

pollution and environmental damage. Environmental law can also function as a means of

restoring unfulfilled rights related to the compensation system or compensation and

environmental restoration, and in development related to environmental law, environmental

law should also be able to play a role as a mediator in community groups that are victims of

pollution or environmental damage due to international trade in agriculture that is forced by

providing guarantees of legal rights. Quoting the opinion of Koesnadi Hardjasoemantri in

Deni Bram (2011) the rights in question can be in the form of: The community has the right to

a healthy and good environment; as well as the right to be able to take part in the

administrative decision-making process on the environment; as well as the right to obtain

information about the environment; and the right to file or submit a complaint. information

about the environment; and the right to submit or complain about environmental cases that

occur.

Policy International Trade Policies in the Agricultural Sector Against Environmental

Law

The rapid development of economic development, on the one hand, has succeeded in

bringing an increase in the prosperity or welfare of citizens in various countries, especially in

developing countries, but on the other hand, it is followed by an increase in the need for goods

and services not only to meet domestic needs, but also the needs of other countries along with

the increasing human population. Efforts to meet domestic and export needs, in the end, have

an impact on the environment and social, where there is a lot of land conversion from forest

land to production land such as plantations or agriculture. This situation can also be found in

the policies of the United Statesn government that the WTO and GATT have taken, outlined,

and pursued through their arrangements. Initially, neither the WTO nor the GATT placed

environmental issues as an issue to be considered in their international trade activities through

their members. Then, after receiving protests from various parties, the WTO and GATT began

to think about efforts to combine two interests at once, namely the interest of how to

maximize international trade activities and environmental interests.

Ismah Tita Ruslin (2014) said The consistency of WTO or GATT member countries,

both developed and developing countries, to preserve the global environment while still

pursuing maximum international trade activities is not in doubt. It is proven that the issue of

environment and development has become an important agenda of the international

community in international forums since 1972, which began with the International

Conference on Human Environment in Stockholm, Sweden, until its peak at the Earth Summit

in Rio de Janeiro 1992, by carrying Agenda 21, which is a blueprint for sustainability

programs and is the basis of a sustainable development strategy. According to Akbar Kurnia

Putra (2016) In the WTO, the interests of international trade and the environment are

maximized how to maximize international trade activities and environmental interests try to

be accommodated through several steps, including:

First, in 1971-1972, in practice, environmental issues were made part of the GATT/WTO

through the GATT's participation in the United Nations (UN) Conference on the Environment

in Stockholm in 1972. In that regard, the GATT conducted a study on the relationship

between international trade and the environment. Then, furthermore, the involvement of

GATT/WTO in environmental issues can also be seen from the existence of the Commission

on Trade and Environment, as well as several cases submitted to the panel, such as the cases

of Tuna Dolphin I, Tuna Dolphin II, Superfund, Unprocessed Herring and Salmon, Gas

Guzzler Tax, and Shrimp.

It is expected that with awareness international trade organizations including the WTO and

GATT in dealing with various cases cases environmental violations can provide benefits or

a better influence on the environment both now and in the future. However, what is expected

still cannot be achieved as a whole, global environmental conditions do not experience good

changes but instead tend to decline, and the economic conditions and social conditions of the

nations of the world also do not experience development but instead experience a decline.

Commitments that have been built In practice, the conflict of interests is always colored by

conflicts of interests, especially those involving developed countries on the one hand and

developing countries on the other. This conflict of interest has even occurred since

Stockholm, and even continued in 2015 during the drafting process of The Paris Agreement.

Environmental problems occur mainly because they are caused by the overexploitation

of natural resources on the basis of development in developing countries developing

countries. As for developing countries, the most important source of problems is in developed

countries with their industrial revolution, with luxurious and wasteful lifestyles that have

depleted energy supplies and caused environmental pollution. Which is a "negative trait" of

developed countries compared to developing countries that are still struggling to fulfill the

basic needs of their people.

The presence of globalization, characterized by One of them is trade liberalization,

which requires the free flow of goods, services and investment between countries. Following

the emergence of the policy of reducing and even eliminating tariff and nontariff barriers

indeed The emergence of policies to reduce and even eliminate tariff and nontariff barriers

has raised great doubts about whether the era of free trade can be in line with environmental

protection commitments, especially in developing countries that are very unequal in

conditions with developed countries.

There are at least two things that Highly feared by developing countries, environmental

factors are considered a barrier to international trade by developed countries with ecolabelling

for example, as well as the implementation of ISO 14000, and many more environmentally

friendly products under the pretext of consumer pressure. Following in The WTO mechanism

applies the principle of national treatment. With this principle, strict requirements in the

importing country can be used as an excuse to reject other countries' products. Secondly, there

are concerns about industrial relocation and investment flows from developed countries to

developing countries in order to avoid relatively stricter environmental requirements in

developed countries. This, it is feared, will lead to "pollution bins". Thus, trade liberalization

will interfere with efforts to protect global environmental quality.

Conclusion

International trade in the agricultural sector now has a close relationship with

environmental law, where environmental law must be considered, this is because of concerns

that large-scale development activities as a result of international trade are causing a decline

in the quality of the environment, which comes from the many needs of natural resources used

in international trade in international trade activities, especially in the field of international

agriculture which requires the expansion of land converted into production land or

agricultural land.

In practice the WTO, which is one of the international organizations in the field of

cross-border trade, has made efforts such as conducting studies on the relationship between

international trade and the environment and establishing the The Commission on Trade and

Environment has taken up and resolved several cases related to environmental issues

submitted to the relevant parties or panels, but due to its spirit of free trade and lack of

mandate and neutrality.