ANTI-DUMPING RULES AND THE AUSTRALIA-CHINA FREE TRADE

AGREEMENT

DISUSUN OLEH :

NAMA : IIN OKTAVIANI

NIM : H1A116103

UNIVERSITAS HALU OLEO

JURUSAN ILMU HUKUM

FAKULTAS HUKUM

KENDARI

2019
ANTI-DUMPING RULES AND THE AUSTRALIA-CHINA FREE TRADE
AGREEMENT

Table of Contents

Introduction……………………………………………………………… 2

Free Trade Agreements in the GATT / WTO Framework………………. 3

Recovery of Trade Based on GATT / WTO…………………………….. 4

Recovery of Trade Under the Free Trade Agreement…………………... 5

Conclusio………………………………………………………………... 6

Introduction

On October 24, 2003, before Prime Minister John Howard and Chinese
President Hu Jintao, the two governments signed the Australia-China Trade and
Economic Framework, announcing the agenda for closer bilateral relations in the
coming years. In response, this was followed by a joint study to explore the
feasibility of the Australia-China Free Trade Agreement (ACFTA) Previous to the
achievement of the Joint Feasibility Study in March 2005, China requested
Australia's recognition of its large contribution to an increase in the market
economy as a prerequisite for the start of the ACFTA Negotiations. Although
many controversial submissions were made by domestic producers, the Australian
government, attracted by China's enormous market potential, gave China the full
market economy status to initiate ACFTA negotiations. A free trade agreement
(FTA) between China and several neighboring Australia, such as New Zealand
and Australia Singapore, has allowed Australia to lose more bargaining power and
get fewer opportunities during the ACFTA negotiations. The progress achieved so
far in negotiations has been disappointing due to a lack of consensus between the
two parties regarding aspects (government procurement, agricultural products,
intellectual property rights, services and investment). Although there are
conflicting interests, the basic problem that arises is the way both parties can
develop better strategies to maintain balance creating more open access in the
markets of other parties and protect domestic industries in disadvantaged positions
at the import of other parties. Over the past few decades, trade solutions have been
adopted in Indonesia. FTAs have been maintained as safeguards and are thus the
largest effective and commonly used means of negotiating parties to discuss this
critical issue. The current rules under the World Trade Organization (WTO)
contain regime regulations for major trade recovery measures, namely anti-
dumping.

Australia and China have identified bilateral trade agreement negotiations

as a priority for their trade policies in recent years. Surprisingly, in February 2009,
Australia already had bilateral agreements with Thailand, Chile, the United States
and Singapore; closer economic pact relations with New Zealand; and the latest
agreement signed with the Association of Southeast Asian Nations (ASEAN) and
New Zealand to build a free trade area. In addition, FTA negotiations with China,
Japan and several other countries are also underway. In February 2009, China has
formed many bilateral FTAs, including with Pakistan, Chile, ASEAN, New
Zealand, and Singapore, and China is currently negotiating with South Korea and
South Africa. Mainland China is also a member of two economic partnership
arrangements that are closer to Hong Kong and Macau. It should be noted that
there are special provisions which explicitly cover trade solutions based on all the
agreements mentioned above that Australia and China have signed. These
provisions in the FTA represent a different approach to trade solutions, but have
similarities, regardless of the diversity of trade and economic situations in those
countries and regions.

Free Trade Agreements in the GATT / WTO Framework

A free trade agreement is an agreement negotiated between two or more
countries or territories to form a free trade area through which more favorable
conditions for trade are given to participating countries or regions in the area. It is
said that the FTA departs from the care obligations most favored by GATT /
WTO members, which are the cornerstone of the post-war GATT / WTO world
trade system. Regardless of this risk, however, there are several clauses that
explicitly address various FTAs in the GATT / WTO framework. Paragraphs 4–10
of Article XXIV GATT, and officials related to the interpretation, understanding
of Interpretation of Article XXIV of GATT 1994, regulate the formation and
operation of customs unions and free trade areas in goods.10 In addition, they
specifically identify requirements for establishing and signing trade agreements
regional in Indonesia the form of customs union and free trade area. 11 Paragraph
2 (c) of November 28, 1979's Decision on Differentials and Reciprocity of More
Profitable Treatments and Full Participation of Developing Countries, which are
otherwise called Empowerment Clauses, 12 empower certain countries to engage
in preferential trade arrangements in trade in goods if all parties involved are
developing countries. In addition, a series of requirements similar to GATT
Article XXIV, which must be met by regional agreements for developed and
international countries in developing countries, are also discussed in Article V of
the General Agreement on Trade in Services (GATS).
Recovery of Trade Based on GATT / WTO
In general, the trade recovery measures permitted in the GATT / WTO
framework mainly include three basic types: anti-dumping actions, balancing
actions, and security measures. These special measures allow WTO members to
temporarily leave their obligations committed during negotiations under GATT /
WTO rates in seeking short-term assistance to domestic stakeholders. By carrying
out these steps, the interests of many domestic stakeholders, when faced with
increasingly severe challenges related to foreign competition, appear FTAs, thus
being calculated and balanced. Anti-dumping actions and countermeasures have
been designed and carried out to combat the alleged "unfair trade" practice. If
imports from a particular country or region are sold at wasted prices in the
domestic market and cause dangerous disposal to domestic industries, anti-
dumping measures can be called to control this deviant competition. Likewise,
countervailing steps are taken to counter unfair subsidies obtained from foreign
governments for exports to lower prices and domestic industries are thus subject
to unbearable competition from foreign rivals. In connection with this, Article VI
PUTP 14 and the 1994 Antidumping Agreement are basic anti-dumping
regulations in Indonesia.
GATT / WTO, while Article VI of the GATT, Article XVI of the GATT16
and the 1994 Agreement on Subsidies and Balancing Measures (1994) mainly
addresses the issue of subsidies and balancing. In addition, WTO rules also
provide drugs that import into the domestic market causing or threatening to cause
serious injury to certain domestic industries. As a result, protection measures,
through quotas and other trade restrictions measures, can be temporarily carried
out to deal with this problem. Under the protection rules currently operating at the
WTO, XIX Articles from GATT18 and attachments through the Agreement on
Protection, protection measures should be applied to imports "regardless of
source.
Recovery of Trade Under the Free Trade Agreement
According to the WTO, as of December 2008, 421 regional trade
agreements ("RTA") had been notified to the WTO.21 Furthermore, there was an
indication that almost 400 RTAs were scheduled to be carried out by 2010.
Among them, FTAs and partial scope agreements were calculated to be more than
90 %, while customs union forms less than 10%. 23 In front of him, this statistic
shows the current wave of regionalism. However, one concern about this wave is
whether the growth of regionalism results in the interests of certain domestic
stakeholders being harmed. Further attention This is a strategy that can be
developed to ensure minimal injury to industrial households when the RTA is
implemented. As a result, drug trafficking in action, as an effective and efficient
way of responding to this challenge, has been adopted in most RTAs, especially
FTAs.
In general, a number of methods can be adopted to regulate trade repairs
under a free trade agreement. For example, in some FTAs, member countries must
provide exceptions to take anti-dumping actions and retaliation against products
from other members involved in the agreement. One such effort can be found in
the Australia's New Zealand Trade in Economic Relations Agreement
(ANZCERTA). Another method is to carry out special anti-dumping or anti-
subsidy investigations against member countries through a unique series of
substantive and procedural rules. Possible ways to do this include establishing
specialized organizations or bodies among member countries to deal with disputes
arising from anti-dumping or countervailing investigations. The North American
Free Trade Agreement (NAFTA) is the best example to describe this method.
Compared to anti-dumping measures and countermeasures, protection measures in
FTAs are more complex. The three basic types of safeguard measures are usually
handled in most FTAs, including bilateral protection, special protection, and
global protection. Bilateral safeguards are often carried out during the transition
period, a period that gives both parties a certain time agreement to remove or
reduce tariffs according to the commitment in the agreement. Generally, bilateral
safeguards allow a suspension of tariff reduction or tariff increases from the
preferential level to the previous Most Favorite Nation (MFN) level. These steps
are legally permitted during the transition period and thus can often be
implemented in two or three years. However, once the transition period is
complete, bilateral safeguards must be stopped. Special protection has been
designed and taken to protect the sensitive sectors for parties involved in FTAs.
The sensitive sector is called, in this case the context, is the industrial sector that
produces products that are very important for the country or territory. By
implementing special protection, parties to the FTA are thus able to avoid the
protective pressure brought by various parties of domestic stakeholders.
According to the Agreement on Protection, WTO members must be
treated equally when global protection is carried out.26 However, some FTAs
agree to exclude party imports in FTAs from global protection of actions. This
approach does raise the question of whether it violates the GATT / WTO non-
discrimination principle. Although the WTO panel applies the rules of
"parallelism" to deal with global protection disputes in Indonesia FTAs, which
prohibit asymmetry between safeguard investigations and the application of
measures of safeguards, they avoid evaluating these approaches in the context of
the GATT / WTO framework. Even so, although nothing is certain. In conclusion,
WTO members continue to adopt this approach when taking global protection
measures in their respective FTAs.
Conclusion
The act of restoring trade, as a safety valve for free trade, has played an
increasingly important role in the FTA. An efficient and effective system of trade
recovery measures can help domestic industries as a powerful weapon in
combating sharp pain that FTAs temporarily carry, and thus protect the import
market to a certain level. Moreover, the sound system can also be a escape valve
when the government is faced with a decline in national welfare which is claimed
to be protectionist. Therefore, the enactment of trade recovery measures in an
FTA can alleviate the political pressure imposed on negotiating parties to a certain
extent during negotiations and thus facilitate agreement. In this case, successful
regulation and implementation of future trade recovery measures ACFTA is the
most important. This will not only bring more beneficial results of ongoing
negotiations, better ACFTA agreements, and a successful free trade area; it will
also have a broad impact on future trade relations between Australia and China.