Indonesian Footwear Case Study

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International Economic Influence in Trading System Among Nations:
Indonesian Footwear Dispute in 1998

(Widya Dwi Rachmawati / IRE-5 / 016201400176)

Introduction

Indonesian footwear dispute in 1998 is one of the international economic legal cases that occur in the WTO. This case is very concerned with Realism, Liberalism and Marxism. Realism is the perspective that sees a problem in terms of competition and conflict, emerging as the man basically selfish. The realist believes that actor in the relationship between countries is only state, therefore the power politic is dominant. Who has the power, they will be powerful. Whereas in liberalism economic perspectives, actors in the relationship between countries is not just limited to the state, …show more content…
Argentina safeguards measures is a serious trade barriers for export in Indonesia set in the form of specific duty which is quite high for footwear with HS. 6402.19.00 imposed specific duty amounted to US $ 7.40 per pair, for the HS. 6403.19.00, the specific duty imposed was 12: 10 US $ per install and for the HS. 6404.11.00 imposed specific duty amounted to US $ 7.00 per …show more content…
Thus, the decision of the WTO Appellate Level shows that in carrying out exports in particular footwear, Indonesia has never violated the provisions of the trade within the framework of the WTO. As an illustration, Indonesia is a country exporting footwear number 3 to Argentina with an export value of $ 22,030 in 1997 an USD 15,516 .357 in 1998 and $ 4,558,332 for the period January-June 1999. Whereas the market share of the products of footwear to Indonesia in 1997 was $ 14,06%, for the year 1998 amounted to 8,72% and for the period January-June 1999 amounted to 5.4%.

This article will discuss the footwear dispute between Argentina and the European Union, the United States and especially Indonesia, which occurred in 1997. The purpose of this article is to explain the influence of international economic law with trading system between countries. To answer the question, the writer will use Marxism as the theoretical background of this article. Then this article will examine how WTO resolves this case so that this case can be resolved in 1999. In the conclusion part, it will conclude all content of this article.

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