The Protection of Domestic Industry through Safeguards Instrument GATT/WTO and Its Implementation on Downstream Steel Industry In Indonesia

Abstract

World Global Crisis causes all trade world find difficulties. There will be increasing particularly import product in a country, including to Indonesian market. This situation faced by national industry. This getting worse by the implementation of free trade agreement between ASEAN member and China in the form of ASEAN China Free Trade Agreement (ACFTA). Steel as national strategic industry is a vital industry for developing country like Indonesia, so government should protect it against incursion of import products. Increasing imported products directly impact to most downstream steel industry, such as nail, successor steel, strand metal, steel wire rope, nut, boltand other. Indonesia as member of WTO can use GATT/WTO safeguards instrument to protect domestic downstream steel industry from increasing import of downstream steel product. This article analyzes: first, how to protect domestic industry through safeguards GATT/WTO instrument in Indonesia and, how does implementation of safe guards instrument has protecting Indonesia domestic downstream steel industry. The protection for domestic industry through safeguards GATT/WTO instrument in Indonesia executed under trade security instruments, namely President Decision (Kepres No. 84 Year 2002) and Act 17/2006 (UU No. 17 Year 2006). Some provisions in these instruments have not yet in accord to Safeguards Agreement and growth of industry progress. Safeguards regulations do not give protection to downstream steel industry effectively. There are numbers of constraint faced by downstream steel industry and by KPPI. Keywords: Protection, Domestic Industry, Safeguards, Downstream Steel Industry