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Indonesia’s nickel export restriction policy: alternative on environmental approach for Article XI:1 GATT justification

Rainer Marampa Bari (Faculty of Law, Diponegoro University, Semarang, Indonesia)
Nanik Trihastuti (Faculty of Law, Diponegoro University, Semarang, Indonesia)
Pulung Widhi Hari Hananto (Faculty of Law, Diponegoro University, Semarang, Indonesia)

Journal of International Trade Law and Policy

ISSN: 1477-0024

Article publication date: 14 April 2023

Issue publication date: 8 May 2023

283

Abstract

Purpose

This paper aims to analyse the aspects of the demonstration process of Indonesia's regulation on nickel export restriction for its eligibility to be excluded from Article XI:1 GATT. It also analyses the possibility of the use of an environmental approach in the demonstration process and for an alternative measure in its implementation.

Design/methodology/approach

The paper uses a normative research method in conducting its analysis. It analyses Indonesia's nickel export restriction policy based on the European Union's claim regarding quantitative restriction, with the international trade governance in the WTO framework, and certain international trade principles. The study also involves certain WTO jurisprudence to give a comprehensive analysis to the case.

Findings

This paper finds that Indonesia still needs to provide a complete and comprehensive demonstration to prove its eligibility for exclusion from Article XI:1. Demonstrating merely based on an economic approach is inadequate to convince the panel in Indonesia – measure relating to raw material for justification under Article XI:2. This study further finds that both parties generally focus on the economic aspect, which leaves room for conflict of interest. Other aspects with a lower probability of conflict of interest, such as the environmental approach, could be an alternative for the implementation.

Originality/value

This paper fulfils the need to provide a scientific analysis of the application of Indonesia's nickel export restriction policy, including its proceedings in WTO's dispute settlement body, which is essential for international trade governance enforcement.

Keywords

Citation

Bari, R.M., Trihastuti, N. and Hananto, P.W.H. (2023), "Indonesia’s nickel export restriction policy: alternative on environmental approach for Article XI:1 GATT justification", Journal of International Trade Law and Policy, Vol. 22 No. 1, pp. 15-32. https://doi.org/10.1108/JITLP-07-2022-0026

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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