UPH-MTIC Distinguished Lecture Series: ?Non-Tariff Measures: Current Trends and Future Developments for Indonesia and the WTO?

Non-Tariff Measures (NTMs) have been a steady source of trade friction ever since the earliest days of the General Agreement on Tariffs and Trade (GATT). Today, under the trading system overseen by the World Trade Organization (WTO), they continue to be a source of tension and to confound traders and policymakers in both developed and developing countries. To address that issue, UPH held a seminar that seeks to shed some light on the recent uptick in the use of NTMs by many WTO Members and discusses what developments are likely to take place in the short to medium term future.

In the seminar that was held in June 26, 2013, UPH present Paolo R. Vergano ? Partner at FratiniVergano, European Lawyers in Brussels, Belgium, and Singapore. Paolo also teach as an Adjunct Professor at UPH Graduate School in MTIC (Master in Trade, Investment, and Competition Law) program. This seminar moderated by Simon Lacey ? Managing Director of UPH Analytics Research & Training for Law-Business Policy and Academic Director of UPH Graduate School in MTIC Program.

In the seminar, Paolo firstly distinguish Non-Tariff Measures (NTMs) and Non-Tariff Barriers (NTBs). NTMs generally defined as measures other than tariffs, which have an effect on trade, while NTBs defined as selected (non-tariff) measures that discriminate against foreign products, directly or indirectly, de jure or de facto. Paolo admitted that today, every country especially EU implied non-tariff measures in trading with another country. For example, certification requirements in the EU?s IUU regulation, restriction on food safety and SPS requirements, sustainability requirements for biofuels foreseen in the EU?s RED and FQD, etc. According to Paolo, the motif behind this regulation could be protection for domestic industries or it is purely about the concern for environment, health, and so on. Trader who is harmed with these regulations has to raise concerns, negotiate, and prove to their government, trading partners in another country, or even WTO that these regulations are NTBs.

In Indonesia?s context, which will face AEC 2015, Paolo suggested ASEAN countries to unite in order to gain more bargaining power so they can compete, challenge, and ?have cases? with other blocks or countries. Responding Paolo, Simon said that it?s hard for ASEAN countries to challenge other party in trade cases, since the mentality of ASEAN people usually tend to avoid conflict. Paolo in response to Simon said that actually conflict is not very bad as it?s looked, and ASEAN need to learn about this because other countries, which will invest much after AEC such as EU, will not think twice bringing their cases to the court if they find NTMs or NTBs. (of)