THE NECESSITY OF CAPACITY BUILDING FOR INDONESIA'S EFFECTIVE UTILIZATION OF WTO DISPUTE SETTLEMENT MECHANISM: IMPLEMENTATION OF GATT ARTICLE XX FOR TRADE AND ENVIRONMENT ISSUES

Abstract

AbstrakThe World Trade Organization Agreement, aimed to also protect theenvironment, provides a special provision on environment under article xx.Any dispute arose between parties in respect to the article should be settledtrough the WTO Dispute Settlement Mechanism. Although environmentalprotection should be sought in trade, it is often problematic for developingcountries. They generally lack an adequate domestic environmentallegislation and its enforcement because they place greater priority oneconomic development. Indeed, there have been a number of cases foughtbetween developing countries and developed countries on this very issuewithin the WTO Dispute Settlement Mechanism. In addition, there areseveral conditions that might prevent them of using the mechanism effectivelywhich includes: lack of understanding of WTO law and its jurisprudences,lack of institutional capacity, and the fear of retaliation from developedcountries when bringing the claim against developed countries to DisputeSettlement Mechanism. Indonesia, as one of developing countries also facesthe above three problems. This paper will discuss what Indonesia need toprepare so that they can use the Dispute Settlement Mechanism effectively toresolve any dispute (if any) with other country, particularly in respect to theviolation of the article XX under the WTO Agreement