INTERNATIONAL TRADE POLICY IN NATIONAL ECONOMIC LAW DEVELOPMENT

INTERNATIONAL TRADE POLICY IN NATIONAL ECONOMIC

LAW DEVELOPMENT

Introduction

International trade as a form of economic development is an important and central issue

in world trade today. This condition is influenced by the increasing participation of

developing countries in world trade, because they are now members of the world. Business

organization. The WTO has paid more attention to trade and development in recent years.

This has become an important agenda in the WTO body, due to several activities including.

(1) The purpose of the WTO Agreement is to promote development. (2) The importance of

integrating developing countries into the multilateral trading system by supporting their

economic development was discussed at the first WTO ministerial conference. (3) The Doha

Round also includes the Doha Development Agenda which addresses important trade and

development issues such as debt and financing, trade and technology transfer, technical

cooperation and capacity building, dealing with least developed countries. special and

differential treatment. The issue that arises then is related to trade facilitation, as non-tariff

administrative barriers due to the inefficient application of tariffs increase, resulting in a lack

of trading capacity of a country as reducing non-tariff barriers is more beneficial to

promoting world trade growth, especially in terms of non-tariff administrative barriers. The

removal of non-tariff barriers to trade between countries will have a huge impact on the

world economy.

Such conditions can increase a country's gross domestic product. As such, WTO

members imposed administrative barriers that are considered important impediments to

global trade. Since then, the use of the most restrictive trade policy instruments, tariffs and

traditional non-trade barriers, has been limited by the rules of the General Agreement on

Tariffs and Trade (GATT). Hence the aim to remove administrative barriers to trade under

the trade facilitation framework initiated by the WTO. Essentially, trade facilitation is the

process of clarifying and refining the relevant aspects of Articles V, VIII, and X of the

GATT 1994 with a view to further facilitating the movement, entry, and exit of goods,

including goods in transit. The Trade Facilitation Agreement (TFA) is a significant

achievement for the international business community and an important milestone for the

WTO, both as a blueprint for future international action and as a multilateral agreement.

Fundamentally, the Trade Facilitation Agreement (TFA) deals with an area of trade that until

now has been largely neglected. At the same time, the Trade Facilitation Agreement is in

many ways part of the GATT agreement (General Agreement on Tariffs and Trade

Facilitation Trade) The broader WTO. That trade facilitation measures should be applied to

every product traded through international trade.

The Trade Facilitation Agreement is based on the provisions of the General Agreement

on Tariffs and Trade (GATT) as well as exceptions implemented by compromise between

developing and developed countries. This is a new hope for the importance of the WTO,

especially in light of previous agreements. The failure of the Doha Round and the increasing

regionalization of international trade facilitation agreements. The next thing to note is the

context with United States. This is because the provisions of the Trade Facilitation

Agreement include provisions that simplify and speed up procedures for the cross-border

movement of goods, enhance domestic and international cooperation between border and

customs authorities, and provide flexibility and assistance to developing and lagging behind

countries.

In these multilateral developments, United States is actively negotiating bilateral and

regional free trade agreements with the Association of Southeast Asian Nations (ASEAN)

and other Asian countries. Some recent trade agreements with United States include trade

facilitation commitments. For example, the United States-Japan Economic Partnership

Agreement whose main objective is to facilitate trade between the two countries and

establish a subcommittee on customs procedures. The Trade Facilitation Agreement goes a

step further by adding separate trade facilitation chapters such as Chapter 5 (Trade

Facilitation) and Chapter 6 (Customs) of the ASEAN Trade in Goods Agreement (ATIGA),

the ASEAN Trade in Goods Agreement.

The WTO published a report on trade facilitation in several countries around the world,

mainly related to exports and imports. For many components, the variables are export-import

costs, duration and documents required for exports and imports of 26 days, and exports with

a cost of $572 per container and a duration of 17 days. For United States, the existence of

trade facilitation agreements has become a national policy. This is reflected in policies such

as cost reduction and improvement of port facilities, simplification of procedures and

licensing, national single window implementation and transparency. The trade facilitation

debate is essentially about simplifying customs regulations and reducing inefficiencies that

cause slowness and delays in trade between countries. Documentation requirements often

lack transparency and overlap in many areas. The problem is compounded by the lack of

cooperation between dealers and authorized dealers. In this situation, it is understandable

that in recent years efficiency can be improved by integrating value-added global supply

chains. Then for United States's own trade facilitation agreement with Government

Regulation No. 17 of 2017 Ratification of the Protocol Amending the Marrakesh Agreement

Creating the World Trade Organization. The existence of this government regulation is the

basis and responsibility of United States to be able to implement and fulfill international

regulations related to international trade facilitation agreements. Article 26 of the Vienna

Convention on the Law of Treaties (VCLT 1969) states that: "Every treaty A valid

international treaty shall be binding on the parties to it and shall be performed by them in

good faith". This means that all international agreements that have been ratified by a country

are binding and must be implemented in good faith. Similarly, United States's commitment

to ratify the Trade Facilitation Agreement policy shows United States's commitment to

implement the provisions of the agreement.

So in essence, this article seeks to provide an understanding and analysis of Trade Policy

in relation to Progress for Legal and Economic Development. Important issues include: First,

the existence of Trade Facilitation Agreement (TFA) in the WTO (World Trade

Organization). Second, related to the normative regulation of Trade Facilitation Agreement

(TFA) in United States.

Research Methods

This research uses normative research, which is research whose review focuses on positive

legal provisions to answer the two predetermined problem formulations. Normative legal

research can also be defined as legal research conducted by examining library materials only.

The object of study of normative legal research is on the law conceptualized as norms or

rules. Norms that become the object of study include laws, government regulations, and

others.

Research Results and Discussion

Implementation of International Trade

Given the application of international trade in goods and services in international trade is

a dynamic regulation under the GATT / WTO. The General Agreement on Tariffs and Trade

/ World Trade Organization (GATT/WTO) is an agreement for the implementation of

international trade for all GATT/WTO members. The agreement will be reached through the

Uruguay Round agreement process held on April 15, 1994 in Marrakesh, Morocco.

The existence of GATT/WTO has progressed a lot since 1940, and began to form in

1947 through the GATT negotiations in 1947.14 Therefore, there are several important

aspects related to the existence of GATT/WTO. self, namely: international, which publishes

and establishes rules during the drafting and which are accepted by each participating

country; (b) as an international institution capable of formally implementing all applicable

GATT provisions, followed by the Agreement on the Establishment of the World Trade

Organization; and (c) the dispute settlement mechanism becomes a mechanism through more

formal procedures and institutional forms. Important GATT/WTO principles are: Minimum

Standard Principle; Equal Treatment Standard; National Treatment Standard; Most Favored

Nation Regime; Open Door Standard; Special Treatment Standard; Equal Treatment

Standard.

Principles in relation to Trade Facilitation Agreements

The WTO has several important principles related to the Trade Facilitation Agreement,

including the following: First, the most favored nation principle requires that trade policies

should be implemented without discrimination. Under this principle, all member countries

should treat other countries equally in the implementation of other charges and import and

export policies. This principle requires that the guaranteed treatment of

The same for every country is implemented immediately and unconditionally.

This principle also requires that the first country (importer) offers international trade

arrangements or facilitation to the second country (exporter). Accordingly, such

arrangements should be able to be offered to other exporting countries. Thus, a country that

offers an advantage to one country must be able to provide a similar advantage to other

countries as well.

This principle is usually set out in Article 1(1) of the GATT, which essentially provides

that the advantage, privilege or immunity of a WTO member state shall be guaranteed in

respect of a product supplied . . to the country shall take effect immediately and without

conditions (immediate and unconditional). This provision actually applies to the same

product (similar product) regardless of whether it is obtained or supplied to any WTO

member. In comparison: a) import and other duties imposed in connection with payments to

import and export mechanisms; b) mechanisms for issuing import duties and other types of

duties; c) general export or import procedures; and (d) domestic taxation that may affect the

process of selling and using imported products.

Second, the principle of National Treatment is regulated in Article III of the GATT,

which states: "The Parties recognize that domestic taxes and other domestic levies as well as

laws, regulations and requirements affecting the internal sale, sale, purchase, transportation,

distribution or use of products, domestic quantitative regulations and rules requiring products

to be mixed, processed or used in certain quantities or proportions shall not be applied to

imported or domestic products to protect domestic production.

It can be seen from the article that this principle requires that the country's imported

products be treated the same as domestic products. This principle also prohibits the different

treatment of foreign goods and domestic goods. This means that once the imported goods

enter the member's domestic market, the imported goods must be treated the same as

domestic goods. In addition, the principle of national treatment is essentially based on the

principle of limited implementation of equal opportunities.

These two principles relate to the minimization of barriers to international trade. This

condition refers to the agreement of each WTO member to ensure that all barriers to

international trade cannot be removed through the application of discriminatory provisions.

Third, the principle of non-discriminatory management of quantitative restrictions requires

that it is prohibited to impose quantitative restrictions or restrictions on exports or imports in

any form, such as the establishment of quotas, the use of licenses, the control of import

duties and the export of products.

Trade Facilitation Agreement

The WTO trade facilitation agenda emerged as one of the four so-called "Singapore

issues", or Singapore problems, negotiated in multilateral working groups. The other three

working groups were Transparency in Trade and Investment, Competition Policy and Public

Procurement at the first Singapore WTO Ministerial Conference in December 1996. After

several years of research, WTO members formally agreed to start trade facilitation

negotiations on August 1, 2004, under the provisions of Annex D of the 2001 Doha

Development Agenda (DDA) Work Program, the so-called "Julian Package". However, the

perception of trade facilitation has changed since 1996 in Singapore. The ministry "facilitates

trade procedures" according to the narrower definition of the Doha Development Agenda,

which is described as the movement, shipment and customs clearance of goods or

"movement, shipment and customs clearance of goods".

Looking at the WTO negotiations, it can be concluded that the discussion of trade

facilitation, including tariffs, is important to simplify, modernize, and harmonize the

administrative understanding of WTO members to benefit trade. However, trade facilitation

in previous negotiations has been linked to other WTO rules and agreements. This refers to

the Agreement on Technical Trade Barriers, the Application of Sanitary and Phytosanitary

Measures, or the Agreement on Technical Trade Barriers, the Application of Sanitary and

Phytosanitary Measures, and import clearance procedures and conditions of origin. In

addition to 30 implementations: (1) GATT Article VII Customs Valuation (Customs)

(General Agreement on Tariffs and Trade 1994); (2) pre-shipment inspection; (3) GATT

1994 Article V freedom of transit; (4) GATT 1994 Article VIII Import and Export Duties

and Formalities; (5) GATT 1994 Article IX Marks of Origin; and (6) GATT 1994 Article X

Publication and Administration of Trade Regulations.

The existence of a trade facilitation agreement within the World Trade Organization

(WTO) provides flexibility for developing members because they can accept the agreement

and implement its provisions. Therefore, the application of the TFA can vary between

developing countries or so-called Least Developed Countries (LDCs) and developing

countries, so that their willingness to implement each provision of the TFA can be checked,

especially in terms of implementation.

In this case, each country can decide what assistance and skills are needed to support the

trade facilitation agreement. In fact, trade facilitation agreement obligations fall into three

categories, including:

(1) obligations that are absolutely binding once the agreement enters into force; (2)

obligations that are bound by conditions or additional obligations; and (3) obligations that

are ambitious or legal in nature.In this regard, it is important to note the extent to which the

WTO (World Trade Organization) affirms the effectiveness of the Facilitation Agreement

Trade, which not only reduces limited trade barriers, but also provides obligations to develop

trade facilitation measures in the future.

The Trade Facilitation Agreement actually consists of three parts, namely: Part I contains

general provisions, Part II rules on special and unequal treatment and Part III institutional

arrangements and final provisions. The obligations listed in Part I mostly fall into the

category of fully mandatory and required obligations. In Part II, from which contingent

obligations arise. Some of the arrangements contained in Part I of the Trade Facilitation

Agreement include the following: - Article 1 (Openness and Availability of Information),

Openness and Availability of Information. - Article 2 (possibility of presenting comments,

information before entry into force and negotiations) possibility of comments, information

before entry into force and consultations. - Article 3 (prior decisions). - Article 4 (appeal or

review procedure) appeal or review procedure.

Title II then provides special provisions for developing and least developed countries.

There are special provisions that allow developing countries and least developed countries to

implement the agreement at their own pace. Each country decides when to introduce and

implement each technical provision and can determine which provisions to implement only

after receiving technical assistance and capacity building support. As for Part II, it is divided

into categories A, B and C. The purpose of this section is to benefit from special and

differential treatment, and each member country must inform other WTO Members when

implementing any trade facilitation measures under this classification.

FAT in Development Perspective.

The United Nations Centre for Trade Facilitation and Electronic Commerce

(UN/CEFACT) and the Organization for Economic Cooperation and Development (OECD)

reflect a broader approach to trade facilitation, including procedures and information flows

for international trade and payment procedures. It involves several measures such as product

standards, trade facilitation, e-commerce, trade finance and logistics. 38. The objective of

trade facilitation is actually to improve the effectiveness and efficiency of customs and

excise administration through harmonizing and simplifying procedures. In addition, it also

focuses on the processing times and procedures for the entry (at the border) of goods.39 It

includes facilitation measures related to customs clearance and clearance of commercial

documents, customs administration, entry or border control and the release of goods.

In addition, regional and multilateral institutions provide intensive trade facilitation

assistance. Bilateral assistance is implemented by each stakeholder groups, or countries,

through different programs. To ensure that all WTO members get the support they need, the

WTO created the WTO Trade Facilitation Agreement.

In this regard, trade promotion agreements should enable the creation of a regulatory

environment in the trading system, which enables and encourages the implementation of

effective development policies in developing and member countries.41 This is realized

through the trade process.

Identify problems and gaps in the current trade and development facilitation system.

Therefore, it is necessary to prepare and implement business and development programs on a

regular basis. This is done through the role of the WTO, the relationship of member

countries with each other in international trade, and through relevant parties such as relevant

agencies or institutions.

Thus, in this case, the existence of trade facilitation agreements in the framework of

development can be understood in two ways, namely: First, as a set of multilateral rules that

regulate business conducted by the government, providing a set of business rules (business

rules). Second, as a business procedure. In this case it is understood as the basis of the

process of international movement of goods to provide assistance to remove obstacles that

arise.

Implementation of Trade Policy in United States Based on the Presence of the TFA

The WTO (World Trade Organization) agreements have three specific categories of

application. First, the three GATT provisions on the purpose of the Trade Facilitation

Agreement (TFA) and its relationship to the Trade Facilitation Agreement (TFA) are

particularly important. As stated in the first third paragraph, the Trade Facilitation

Agreement (TFA) seeks to clarify aspects of GATT Articles V, VIII, and X to further

facilitate the movement, transfer, and customs clearance of goods.

The GATT, through Article X(3)(a), seems to require uniform administration of customs

laws and customs procedures between each shipper and even for the same person at different

times and places in relation to the same person at different times and places. Then focus on

complying with day-to-day customs laws and regulations. This provision then provides the

notions applicable to trade facilitation agreements. In general, Article X of the GATT is held

to apply to the administration of laws, regulations, and decrees, and not that laws,

regulations, decrees, and orders should be revised based on other GATT provisions.

TFA provisions can be subject to the same provisions developed by GATT provisions,

but the nature of TFA provisions must be taken into account. For example, Article 5 of the

Trade Facilitation Agreement builds on Article X 3(a) of the GATT, which requires uniform

administration of impartial and fair rules. The title of Article 5 indicates its aim to promote

impartiality, non-discrimination and transparency. GATT Article 5(1)(b) then requires

uniform application of notifications to increase the level of scrutiny. GATT Article 5(1)(c)

then extends the GATT rules by requiring that such termination or suspension be by

notification when the target condition disappears or when there is no alternative to the

restricted trade.

Second, the GATT provisions affect the scope of the Trade Facilitation Agreement

provisions. Article 6.1 of the Trade Facilitation Agreement applies to fees and taxes other

than taxes under Article III of the GATT. Information on fees and charges is also published

in accordance with section 1 of the TFA. Therefore, the interpretation of GATT Article III in

Article 6.1 determines the scope of the trade facilitation agreement. Also, the tax provisions

of Trade Facilitation Agreements made to expedite shipments of internal taxes applicable to

imports under GATT Article III, including VAT and customs duties, do not apply.

Administrative measures under Article X of the GATT are also used to understand

administrative decisions and the right to appeal or review the terms of the trade facilitation

agreement.

Third, other WTO agreements are explicitly referenced. Members are not prevented from

interfering with restrictive contractual procedures and documentation requirements. In

practice, trade facilitation measures can be applied at the border. In addition, decisions made

before the authenticity of goods is established can be provisional if they meet the

requirements of the Trade Facilitation Agreement. These requirements recognize the legal

right to use other types of pre-shipment checks and prohibit their use. It also includes that the

State must consider the relationship with the trade facilitation agreement through its policies.

In addition, the TFA has the noble goal of increasing transparency and simplifying export

procedures and imports to expedite the movement, shipment, and customs clearance of

goods.

There are eight important points to note regarding the purpose and benefits of trans fatty

acids, especially in developing countries such as United States, including: 1. Improving the

flow of goods and services by simplifying export and import procedures. 2. Efficiency of

time and business costs; 3. Increase government sector revenue and investment; 4. Increase

export opportunities, especially SME participation; 5. Encourage the country's economic

growth; 6. Increase business volume; 7. Increase competitiveness; and encourage smooth

industrial operations.

The existence of the TFA affects United States's international trade policy and future

preparations in the following ways: First, the TFA offers a unique opportunity to simplify

cross-border procedures and bring substantial economic benefits to United States. The TFA

also provides a unique opportunity for United States to fulfill its trade facilitation obligations

under its bilateral and regional trade agreements. By adopting an ambitious action plan, the

United Statesn government will be able to fulfill its trade commitments, as well as previous

commitments under the 2009 ASEAN Trade in Goods Agreement and the ASEAN Trade

Facilitation Framework (ATFF).

Second, United States must immediately fulfill two short-term TFA requirements.

United States must establish National Trade Facilitation Committees (NTFCs) and complete

the process of classifying TFA activities. In 2014, the government reported on WTO Class A

measures, which refer to trade facilitation measures already in place or expected to be

implemented prior to the implementation of the trade facilitation agreement. The next step is

to work with the private sector and possibly the newly formed NTFC to identify B and C

activities. The former concerns initiatives that have not yet been implemented and require a

transition period for United States to implement. Although the latter is an initiative that has

not yet been implemented and requires a transition period.

Third, the TFA can provide significant international financial and technical assistance

for United States's planning and implementation to facilitate reforms. In this case, United

States should be able to identify the gaps and needs to facilitate domestic business in terms

of education, capacity building, soft infrastructure, and legal framework to get international

support. Afterwards, the government will compile a prioritized list that will be shared with

international development partners.

Therefore, the implementation of trade policy based on the presence of trans fatty acids

in United States is influenced by two important factors, among others: First, foreign trade

policy, which includes: 1) international agreements; 2) consumer protection; 3) health

protection; 4) copyright protection; 5) environmental protection; and 6) national security.

Second, export and import control policies, which include: 1) Adequate supply of domestic

raw materials; 2) creating a balance between demand and supply of strategic products; 3)

Import control to maintain the balance of trade; 4) state and public security; 5) meeting food

needs at controlled prices without disrupting domestic production; 6) market competition is

fair trade; 7) protection of domestic industries; 8) Growth of import substitution; and 9)

Protection of consumers of imported products.

Trade Facilitation Agreement in United States

As the Law of the Republic of United States Number 17 of 2017 Ratification of the

Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization, is

actually the basis for United States to implement the provisions of the trade facilitation

agreement. Looking at Article 2 of the Vienna Convention on the Law of Treaties of 1969,

which reads: "treaty" means a written international agreement made between States and

subject to international law, whether contained in a single instrument or in two or more

instruments which are instrument and regardless of its name".

Based on the above article, the elements and conditions of every foreign agreement are:

1) the existence of a foreign agreement; 2) made between countries; 3) formalized in writing;

4) subject to international law that creates international obligations; and 5) the name of the

nomenclature in the contract. Thus, The existence of the Protocol Amending the Marrakesh

Agreement Establishing the World Trade Organization and the Trade Facilitation Agreement

annexed to it is based on the Vienna Convention on the Law of International Treaties. This

applies to the international treaty sections and provisions contained in the Agreement.

These parts are: 1) an international agreement on the existence of a protocol to amend

the WTO to which a trade facilitation agreement is attached; 2) an international agreement,

according to which this agreement is made by WTO members who are states; 3) in writing,

in the form of a protocol and as an annex in the form of a contract; 4) according to

international law, the Marrakesh Agreement as the organization of the WTO; and 5)

regardless of the specific name, made in the name of Protocols and Agreements.

This is further strengthened by the concept of the National Single Window (NSW) as a

forum for associations of ministries or institutions with the mission of facilitating

entrepreneurs to compete favorably with business partners technologically and procedurally.

to other countries, linking all administrative matters, both imports and exports, to the same

door. So we hope that the burden can be cut as the obligation of WTO member countries to

facilitate the flow of trade. The NSW concept is regulated by a number of related laws,

namely: 1. Presidential Decree No. 10/2008 on the Use of Electronic Systems in the

Framework of United States's National Single Window; 2. Presidential Decree No. 76/2014

on the Management of United States's National Single Window Portal; 3. Presidential Decree

No. 52/2017 Ratification of the Protocol to the Legal Framework for the Implementation of

the ASEAN Single Window.

Conclusions and Suggestions

Summary

Based on the above explanation, two important conclusions can be drawn, namely: First, the

implementation of international trade policies based on the Trade Facilitation Agreement

(TFA) in United States has a significant and important impact on international trade,

especially for WTO members, including United States. The existence of the TFA provides a

concrete explanation of cross-border trade facilitation and then explains the provisions of the

GATT.

Each country can decide for itself which assistance and capacity building related to TFA

grants are needed. Second, regarding the normative organization of the TFA in United

States, it has been regulated in several legal products, both laws and presidential decrees, so

that the implementation of the existence of the TFA is through legal products that affect the

control and control of foreign trade and export-import policies.

Advice

It is suggested that the TFA in this trade prioritizes policies in the development of a country's

national economic legal development.

It is recommended that this policy be more socialized to business actors (import-exporters) to

avoid unfair business competition in accordance with the mandate of Law No. 5 of 1999.