The experience of the application of safeguards on certain iron or steel products in Indonesia : lesson for Thailand

Abstract

In comparison to other trade remedies under WTO, the number of safeguard measures imposed by WTO members has been relatively low as the requirements of safeguard is difficult to fulfill. However, there is change to such trend as there has been an increase in number of safeguard measures imposed by Indonesia. The Appellate Body Report on Indonesia — Safeguard on Certain Iron or Steel Products has provided important lesson to Thailand concerning on the determination of safeguard measure which has not been clearly mentioned in the WTO cases. The importance of safeguard characterization has been emphasized. This dispute has given an significant takeaway that the panel is free to perform objective and independent assessment on the characterization of safeguard measure despite the determination of safeguard measures by domestic authorities. This thesis will address the facts and issues arising in Indonesia — Safeguard on Certain Iron or Steel Products. The underlying reasons and effects resulting from the imposition of specific duty on the imports of galvalume which is unbound product under the Schedule of Concessions will also be examined. More importantly, Indonesia — Safeguard on Certain Iron or Steel Products has given significant implication on the determination of safeguard measure, which will consequently reflect the way the WTO Dispute Settlement Body will handle the application of safeguard measure in the future. Ultimately, this thesis will provide recommendation for Thailand in protecting domestic steel industry.