• No results found

Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA): A Constructivist Analysis Master Thesis

N/A
N/A
Protected

Academic year: 2021

Share "Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA): A Constructivist Analysis Master Thesis"

Copied!
76
0
0

Bezig met laden.... (Bekijk nu de volledige tekst)

Hele tekst

(1)

Indonesia-Korea Comprehensive Economic Partnership

Agreement (IKCEPA): A Constructivist Analysis

Master Thesis

Anggun Paramita Mahdi Ubi 2 / 9, Surabaya, Indonesia, 60244

S 2159929 +62 8111997093

Supervisor : Dr. G. C. van Roozendaal

Master of Arts in International Relations

Department of International Relations and International Organization

University of Groningen

(2)

DECLARATION BY CANDIDATE

I hereby declare that this thesis, “Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA): A Constructivist Analysis“, is my own work and my own effort and that it has not been accepted anywhere else for the award of any other degree or diploma. Where sources of information have been used, they have been acknowledged.

Name Anggun Paramita Mahdi

Signature

(3)

i

Abstract

In globalization era with the advance of technology and the increase of international trade, increased dependency between countries became inevitable. Countries dependency, particularly in international trade, was caused by the comparative advantage owned by each country. Realizing the dependency, countries have been searching for means to deal with the dependency. One of the means to cope with the dependency is by encouraging international cooperation, either through international trade cooperation such as the WTO or by regional and bilateral trade cooperation.

Countries encourage trade cooperation to gained and increase potential market access in their partner countries market. One of the forms of cooperation that could be used to increase market access and deal with countries interconnectivity is by liberalizing trade tariff and reducing trade barriers among countries. One of the channels to reached international cooperation is through the WTO. However, due to the complexity of the WTO mechanisms in concluding and reaching an agreement, the WTO negotiations experienced a stalemate which made countries began to look for alternative to reach those goals. One of the alternatives is by initiating free trade agreements.

As one of active member of the WTO, Indonesia has been actively participated in international trade cooperation. In several years, Indonesia has been actively engaged in several regional trade agreements (RTA). However, in recent years, some concerns were raised among the Indonesian public on the implementation of the free trade agreements. These concerns were raised because Indonesia experienced deficit in the implementation of several free trade agreement. These concerns shaped the perception of the Indonesian public and the government of free trade agreements. Since Indonesia is about to initiate negotiations on Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA), this thesis will analyze the influence of these perceptions on the negotiations of IKCEPA.

In order to analyze this matter, a constructivist approach will be used in this thesis. Constructivists approach is use because constructivists include in their analysis perceptions, ideas, norms and interests in the analysis. Interest, history, domestic and international situation, idea and perception influenced and shaped on how Indonesian public and also government see free trade agreement and how the implementation of the agreement will influence Indonesia. It also influenced the Indonesian government choice of strategies on taking decision to continue the negotiation of IKCEPA and determining position on the negotiation.

(4)

ii

Acknowledgement

First of all, I would to thank to Allah, the Almighty for his blessings that I could finish the thesis as well as I have finished all of my courses. I also would like to express my gratitude to those people who helped and supported me in the process of writing this thesis, particularly Professor Gerda Van Roozendaal as my thesis supervisor. Without her help and patience in supervising me, I would not have been able to bring this thesis into the very end.

During my study in Groningen, I have experienced things and met people who made my life in Groningen colorful. Between those people, I have to address specifically some people like my Groningen-STUNED and Diaconessen House fellows, as my friends who made my days in Groningen exciting and enjoyable. I would like to thank them for their support during the writing process of this thesis. I would also have to give my high appreciation to my superiors, seniors and colleagues in the Ministry of Trade Republic of Indonesia. I have to thank NESO Indonesia and STUNED Scholarship for giving me opportunities to study in the Netherlands, particularly University of Groningen and experienced a lot of things during my stay in Groningen. Last but not least, I have to thank my amazing and wonderful family for always supporting and believing in me to finish my thesis and study. I would also like to dedicate this thesis to my beloved mother and hoped that I have made her proud.

(5)

iii

List of Abbreviations

ACFTA ASEAN-China Free Trade Agreement

AEC ASEAN Economic Community

AFTA ASEAN Free Trade Agreement ATIGA ASEAN Trade in Goods Agreement ASEAN Association of South East Asian Nations AKFTA ASEAN-Korea Free Trade Agreement

CEPA Comprehensive Economic Partnership Agreement CEPT Common Effective Preferential Tariffs

CLMV Cambodia, Laos, Myanmar, Vietnam FTAs Free Trade Agreements

GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product

IJEPA Indonesia-Japan Economic Partnership Agreement

IKCEPA Indonesia-Korea Comprehensive Economic Partnership Agreement IMF International Monetary Fund

MFN Most Favored Nations

MIDEC Manufacturing Industrial Development Center RTAs Regional Trade Agreements

(6)

iv

Table of Contents

Abstract i

Acknowledgement ii

List of Abbreviations iii

I. Introduction 1

I.1. Background 1

I.2. Methodology 4

I.3. Structure of the Thesis 4

II. Theoretical Framework 6

II.1. International Political Economy 6

II.2. Constructivists Approach in International Political Economy 8

II.3. Dependent and Independent Variable 11

II.3.1. Agents 12

II.3.2. Interests 13

II.3.3. Ideas 15

II.3.4. Norms 17

II.3.5. Perceptions 19

III. Indonesian Trade Agreements 23

III.1. Regional Trade Agreements 23

III.2. Indonesian Trade Agreements 28

III.2.1. ASEAN Free Trade Agreements (AFTA) 29

(7)

v

III.2.3. Indonesia-Japan Economic Partnership Agreement (IJEPA) 38

III.2.4. Perception of Indonesian Public on RTA 42

IV. Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA) 44

IV.1. Indonesia-Korea Trade Relation 44

IV.2. IKCEPA 47

IV.3. Perception on IKCEPA 50

V. Conclusion 63

(8)

1

I.

Introduction

I.1. Background

In the era of globalization, countries are closely interconnected, especially through international trade. Countries engage in international trade to enhance cooperation and increase their national economic growth. One of the important features of international trade is trade agreements. Through trade agreements, countries could increase their export and expand their international market, especially because of the elimination of trade barriers. It is also expected that through trade agreements, countries could draw investments and also increase their competitiveness through cooperation in capacity building.

As one of the countries that actively participates in international trade, Indonesia has been taken part and implemented several regional and bilateral trade agreements, such as Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA) which is now called ASEAN Trade in Goods Agreement (ATIGA), ASEAN-Korea Free Trade Agreement (AKFTA), ASEAN-China Free Trade Agreement (ACFTA) and Indonesia-Japan Economic Partnership Agreement (IJEPA).1 Other than regional and bilateral trade agreements that have been implemented, Indonesia is currently taking part in several trade negotiations.

One of the countries that is currently negotiating a bilateral trade agreement with Indonesia is South Korea.2 Since the establishment of Indonesia and Korea diplomatic relations in 1966, both countries have enjoyed a mutual beneficial bilateral relation. This relationship becomes closer when the two countries signed the Joint Declaration on Strategic Partnership to Promote Friendship and Cooperation in the 21st Century in December 2006.

In terms of bilateral trade relations, Korea has become one of Indonesia’s most important trading partners. The total trade between Indonesia and Korea has continued to grow significantly in the last five years. In 2011, Korea became Indonesia’s seventh largest export destination and sixth largest import source.3

1

Hereafter it will be referred to the abbreviations

2 Hereafter it will be referred to as Korea

3 “ Growth of Non Oil and Gas Exports by State Destination,” Ministry of Trade of Indonesia (website),

(9)

2

In order to increase the bilateral trade relations, in February 2011, Indonesia and Korea agreed to conduct a joint feasibility study as a preliminary step to bilateral trade agreement. The feasibility study had been concluded in December 2011 and the result of the study became a recommendation for both countries to initiate negotiations on bilateral free trade or comprehensive economic partnership agreement.4 The result of the study has also been disseminated to Indonesia and Korea public, the academic society, and the business and industry associations in 2012. The round of the negotiations started in 2012, in which the first round was held in July 2012. By implementing the comprehensive economic partnership agreement, both countries hope that the bilateral trade will significantly grow and in the same time would increase investment and cooperation in economic and also capacity building. This agreement is expected to be concluded in 2013 and to be implemented mid 2014, prior to the last stage of tariff liberalization for goods that are listed in sensitive list AKFTA, which is expected to be reduced to 0-5% in 2016.5

A comprehensive economic partnership agreement is believed to be able to bring economic prosperity and growth since it could increase country’s international competitiveness. However, other than to bring advantages, this agreement could also bring some unfavorable effects. One of the unfavorable effects of this agreement is when one sector of industry fails to increase its competitiveness, it might have the possibility to loss its domestic and international market which will also lead to bankruptcy and an increase in unemployment. Because of the possible unfavorable effects of the agreement, some concerns were raised among the public.

In trade negotiations, the negotiators of both countries in general take into account the material characteristics of their countries. The material characteristics include the resources, industrial sectors and financial sectors of the country. However, in recent years in Indonesia, negotiators started to take non-material characteristics in

Non Oil and Gas Imports by State Origins,” Ministry of Trade of Indonesia (website),

http://www.kemendag.go.id/statistik_perkembangan_impor_nonmigas_(negara_asal)/ accessed June 24, 2012.

4 Both countries agreed to use the term of Comprehensive Economic Partnership Agreement (CEPA)

instead of free trade agreement because it is intended to be a more comprehensive agreement and not just related to the issue of tariff reduction and elimination of other trade barriers. A CEPA will include cooperation in capacity building, investment and other economic, trade and investment cooperation. Hereafter the term Comprehensive Economic Partnership Agreement (CEPA) will be used.

5

(10)

3

trade negotiations into account. The non-material characteristics include the perceptions and interests of the Indonesian public and the government on trade agreements.

The non-material characteristics were taken into account in trade negotiations because there have been some concerns from the Indonesian public regarding the negotiation and implementation of such agreement. These concerns were raised when Indonesia experienced a trade deficit in a period when other trade agreements had been implemented. Such concerns shaped the perception of the Indonesian public and the government on trade agreements.

This leads to the main research question of this thesis, “To what extent has the perception about the effects of trade agreements in which Indonesia has taken part, influenced the perception of the public and the government about the Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA) and how those perceptions shaped the process of negotiations and the form of the agreement?”.

In order to answer this question, this thesis will use the constructivist political economy approach. This approach will be used because it acknowledges that government policies could differ according to the circumstances and the time the policies are taken. The differences are influenced by the interaction with domestic environment, other countries government and also international norms.6

Constructivism theorizes the influence of social identities, norms and other collectively shared ideas. Norms, cultures and identities create a social construction of world economy, in which it is closely related with inter-subjective ideas. Constructivism scholars believe that “inter-subjective ideas are essential to an account of policy making and market outcomes because agents and communities use it to deal with uncertainty.”7

Constructivism also believes that non-material aspects also influence how societies and policy makers interpret the situation surround them. It is not only material aspects that influence the interpretation of a society and government. Constructivism believes that norms, identities, ideas, perception and interests are socially constructed, which will influence how agents, the Indonesian public and the government in this

6 Rawi Abdelal, “Constructivist IPE,” in Routledge Handbook of International Political Economy (IPE): IPE

as a Global Conversation, edited by Mark Blyth (New York: Routledge, 2010), 71.

7

(11)

4

matter, see and interpret the subject of analysis.8 This approach will be explained in more detail in the next chapter.

Based on the definition above, this thesis will focus on the perception of Indonesian government and the public on regional trade agreements, in which perception is closely related with inter-subjective ideas. The variables that will be analyzed in this thesis are the perspectives on Indonesian industry competitiveness and the labor employment in Indonesia, especially in the area of trade in goods and trade in services.

I.2. Methodological Approach

This thesis is designed to be a qualitative research based on literature and document review. To analyze the background of IKCEPA, this thesis will use the Indonesia and Korea joint study group report as material of consideration for both countries government to continue the result of the study to negotiation process of the agreement. Other than using the joint study group report to analyze the perceptions, interests and ideas of Indonesian public and government on trade agreements, this thesis will use documents from related ministries in Indonesia, such as press release, briefing papers, presentation, etc and also academic studies, journals, bulletins and respected Indonesian newspapers, such as the Antara as Indonesian official news agency, Kompas, The Jakarta Post, and other newspapers, on trade agreements that Indonesia has been taken part. The documents used in this thesis are documents that were published from 2005 to 2012, since the implementation of ASEAN Free Trade Agreements (AFTA).

I.3. Structure of the Thesis

In order to answer the research question, this thesis will be divided into four chapters. The first chapter is the theoretical framework which will focus on more detail aspects of the theoretical framework that is going to be used in this thesis. In this chapter, a more detail description on political economy and constructivism will be given. This chapter will also analyze constructivist view on political economy. Prior research on trade agreements in general will also be discussed in this chapter.

8

(12)

5

Trade agreements, bilateral and regional trade agreements, that Indonesia has taken part in, are the focus of the second chapter. In this chapter, background on Indonesia’s previous trade agreements will be described. The debate on the expectations and the results or effects of the previous trade agreements will be discussed as well in this chapter. This chapter will also study how those debates have shaped the perspective of the Indonesia’s government and the public on trade agreement.

(13)

6

II. Theoretical Framework II. 1. International Political Economy

This chapter will provide the theoretical framework that is going to be used in this thesis. This thesis will use the constructivist approach on international political economy. This approach is chosen because of its emphasis on the inter-subjectivity of the social reality and its emphasis on ideas, perceptions, norms, identities and interests of the agents. However, before discussing the constructivist approach, a better understanding of international political economy is necessary as the basic approach to explain phenomena in international relations in general and international economy in particular.

International Political Economy studies the interaction between politics and economy in international relations.9 International Political Economy could also be defined as the interaction between states and markets in the international level.10 Three traditional approaches that are usually used in International Political Economy are Economic Nationalism (Mercantilism), Liberalism and Marxism.

Mercantilism, according to Thomas Oatley in his book International Political Economy, is a theory that arises in the 17th and 18th century and studies the relations between state and market in determining economic activity.11 Mercantilist stresses the importance of “wealth for national power and the role of the state to determine the allocation of nation’s resources.”12

It believes that states should play a larger role in the economy area. This approach also believes that government protection on national market is necessary. This could be seen from Friedrich List theory that is quoted by Kevin G. Cai in his books, in which he stated that “in the early stages of economic activity, state should take an important role in terms of giving protection to national market in order to establish a strong national economy and to be able to have an equal position with their foreign competitors, when in the later stage the national economy is

9

Benjamin J. Cohen, International Political Economy: An Intellectual History (United States of America: Princeton University Press, 2008), 16.

10 Robert Jackson and Georg Sorensen, “International Political Economy: Classical Theories”, in

Introduction to International Relations: Theories and Aprroaches Fourth Edition (Italy: Oxford University

Press, 2010) , 184.

11 Thomas Oatley, “International Political Economy”, in International Political Economy: Fourth Edition

(United States: Pearson, 2010), 7-8.

12

(14)

7

stable and strong, government protection could be replace with free trade system.”13

In regard with the free trade system, in mercantilism approach, as Kevin G. Cai stated in his book, “regional trade blocs and bilateralism are created as a supplementary approach to the protection of domestic markets against external competition”.14

As Robert Jackson and Georg Sorensen stated in their book, “mercantilists see economic activity as one of the means to increase state power.”15

The second traditional approach in International Political Economy is Liberalism. Liberalism appears in the 18th century as a response to mercantilism. Liberalism believes that economy and politic are a different field and need to be treated separately, as stated by Thomas Oatley, “liberalism attempted to draw a strong line between politics and economics”.16

In this sense, liberalism argues that market and economic activity should not be influenced by government or any political influence.17 Liberalism stresses the role of market instead of the state. Markets are believed to be able to regulate their own activity and to allocate their resources and the state should not interfere to regulate the activities. In accordance to free trade, liberalism argues that free trade could bring maximum wealth and economic growth for all countries in the world. This is based on the assumption of the “law of comparative advantage” by David Ricardo. In this law, David Ricardo, cited by Robert Jackson and Georg Sorensen in their books, “International Political Economy: Classical Theories,” stated that “free trade makes specialization possible, in which it will increase the efficiency and productivity and will result in bringing the benefit to all participants of the free trade.”18

The third traditional approach in International Political Economy is Marxism. Marxism originated from the thinking of Karl Marx, in which he argues that “economic activity is a form of human exploitation and class inequality.”19

This thinking is mainly based on the assumption that capitalism is based on class relations between the capitalist class or the bourgeoisie and the working class or the proletariat. In this relation, capitalist plays an important role in determining the allocation of resources as means of

13

Kevin G. Cai, ´Theoretical Perspectives: Constructing an Analytical”, in The Politics of Economic

Regionalism: Explaining Regional Economic Integration in East Asia (Great Britain: Palgrave Macmillan,

2010), 13.

14 Ibid, 14. 15

Jackson, op. cit., 186.

(15)

8

production. Because of this, the bourgeoisie is considered to play an important role in the political area. Marxism emphasizes the importance of economics, in which it argues that economics is the basis of politics. Based on this assumption, Marxism argues that “states are driven by the interests of the bourgeoisie or the ruling class.”20

In terms of the international economy, Marxism argues that “the relations between states and bourgeoisie are reflected in a systemic and interdependence relation between capitalist nations and developing world, in which the developing world or the periphery is being exploited by the capitalist countries or the core countries.”21 This relation is based on the assumption that “international economic system is a reflection of the international division of labor, in which the capitalist countries are being at the top of the hierarchy.”22

Based on the explanations above, it could be seen that these three approaches fall into the category of rational choice theories, in which they assume that human beings are basically rational and that they made a decision without influence from social factors and that the decisions taken are based on the material interests. These three approaches also do not take into account the inter-subjectivity that influenced the decision-making process. Since these three approaches could not explain the influence of non-material and inter-subjective factors, this thesis will use the constructivist approach. A further explanation on constructivist approach will be describe in the next section of this chapter.

II.2. Constructivist Approach in International Political Economy

One of the approaches that takes into account the inter-subjectivity in the field of international relations is Constructivism. Constructivism in international relations first appeared in the early 1980s in the field of international politics, especially security studies, as a critique of realism and liberalism and as an alternative to rationalist theories. Inter-subjectivity could be defined as “collective ideas, knowledge and understandings, which are shared by particular set of people in a particular set of time and place.”23

As Audie Klotz and Cecelia Lynch stated in their book, “Inter-subjective

20 Ibid., 190. 21 Oatley, Op.cit., 10. 22 Loc.cit. 23

(16)

9

understandings comprise structures and agents, in which norms, rules, meanings, languages, cultures, and ideologies are social phenomena that create identities and guide actions. Inter-subjective understandings vary across time, place and hierarchies.”24 This inter-subjectivity influences the environments and actions of the actors involved and how they also changed by the interaction between the actors and the environment.

As an alternative to the rationalist theories, constructivism rejects the assumption of rationalist theories in the decision making process, which is based on “calculation of the costs and benefits of the material factors and interests.”25

Constructivists also reject the objective explanations that are generally provided by rationalist theories. Constructivism argues that “reality is socially constructed and ideas shaped the social, economic and political world and that subjectivity influences every aspect of the world and how we view the world, so pure objectivity will be impossible to reach.”26

As Rawi Abdelal stated in his article, “Constructivism is analytical language composed primarily of the social facts of the world, those facts that exist only because they are collectively shared ideas. Such social facts influence patterns of political economy…….they also influence how agents interpret the material reality around them.”27

Rawi Abdelal also stated in his article that “constructivism as an analytical language emphasizes identities, norms, knowledge and interest. Constructivism draws the attention to the powerful constitutive effects of collectively held ideas, and how the ideas connect to self-understandings, the bound of legitimate practices, the accumulation and interpretation of experience, and the material trade-offs of choices.”28

From this definition it could be seen that in the decision-making process, constructivists believe that inter-subjective understandings, and social facts influence the way actors interpret the reality and also the material factors or interests that surround them, which in the end influence the preferences in the decision-making process.

In terms of the role of the state in constructivism, it could be seen from Wendt’s theory, as quoted in Scott Burchil’s book that, “Constructivism is a theory of international system which emphasize the role of the state as the main unit of analysis in

24

Audie Klotz and Cecelia Lynch, Strategies for Research in Constructivist International Relations, (Armonk, New York: 2007), 7 and 9.

25

Abdelal, Op.cit., 63.

26

Rawi Abdelal and Mark Blyth, Constructing the International Economy (Ithaca, New York: Cornell University Press, 2010), 2.

27

Loc.cit.

28

(17)

10

international political theory, in which the action and relations in the states system are inter-subjective rather than material. Wendt also argues that social and state structure are constructed by state identities and interests and not merely based on domestic politics or human nature.”29

The key concepts for constructivism are “ideas, beliefs, values, thoughts, interests, perspectives, norms and identities, in which these key concepts affect the behavior of the actors involved and how they judge or relate themselves to the current situation that they are involved.”30

Constructivists emphasize the role of these social factors and ideational concepts in analyzing the social reality or action. However constructivism does not set aside the material factors which also affect the behavior of the actors and the social reality. These material factors or material interest include resources, wealth, population, labor, etc. As Christian Reus-Smit states, “Constructivism is characterized by an emphasis on the importance of normative or ideational ideas as well as material structures, on the role of identities, interests and ideas in shaping political action and on the mutually constitutive relationship between agent and structures.”31

Constructivists see and interpret material factors or interests based on their inter-subjective understanding, which it affect the preferences in the decision making process.

Since the implementation of ASEAN-China Free Trade Agreement (ACFTA), in which Indonesia experienced a large deficit, the Indonesian public is becoming more aware on the negotiation and implementation of free trade agreements. Because of this increased of the awareness, the Indonesian government is starting to take into consideration the concerns and perceptions of the Indonesian public on trade agreements. Since inter-subjective factors and non-material interests have begun to be considered in determining and negotiating a free trade agreement, a constructivist approach is used in this thesis in order to be able to give comprehensive understandings and analyze the influence of those factors on Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA).

29

Alexander Wendt. (1994), “Collective Identity Formation and the International State,” American

Political Science Review. 88 no.2: 384-95. quoted in Scott Burchill. National Interests in International Relations Theory (Gordonsville, VA, USA: Palgrave Macmillan, 2005), 187.

30

Paul R. Viotti and Mark V. Kauppi, International Relations Theory: 4th Edition (United States: Longman,

2010), 277.

31

(18)

11 II.3. Dependent and Independent Variables

Constructivist theory will be used in order to analyze the dependent variable in this thesis. Dependent variable could be defined as “…circumstances, topics, policies and other phenomena…” that are going to be analyzed.32 The dependent variable of this thesis is government policy on trade agreements, which will include trade agreements that have been implemented and also in the process of negotiation such as IKCEPA. In order to get understanding on the dependent variable, this thesis will use the concepts of constructivism as the independent variables. Independent variables could be defined as “the factors that are believed to influence the dependent variable of a research.”33

Constructivism concepts that are going to be used further as independent variables of this thesis are ideas, interests, norms and perceptions.

Research Question Dependent Variable Independent Variable

To what extent has the perception of Indonesian public and government about the effects of trade agreements in which Indonesia has taken part influenced the perception of the public and government about the Indonesia-Korea Comprehensive Economic Partnership Agreement (IKCEPA)? Indonesian government policy on trade agreements

- Interest of the Indonesian public and the Indonesian government on IKCEPA - Perception of the

Indonesian public and the government on trade agreements

II.3.1. Agents

Constructivism uses the term ‘agents’ to describe the actors involve in the case study. The agents in constructivist perspective include state or government, international organizations, individual, social movements, corporations, groups, classes,

32 Laura Roselle and Sharon Spray, Research and Writing in International Relations (United States:

Pearson Education, inc., 2012), 10.

33

(19)

12

etc.34 Constructivists study the interaction between agent and structure. Structure could be define as a system that include social relations which include shared comprehension, rules and situation that shaped social action. 35 Constructivists believe that “structures can shape the behavior and social identities of agents and also the other way around, structures are shaped by the behavior and social identities of agents.”36

In this sense, constructivists also believe and recognize that “government policy and preferences could vary across time and could be affected by the interaction with domestic societies, other governments and also international norms.”37

The actors or agents that will be involved in regional or bilateral trade agreement negotiations will not be limited to the Indonesian government officials but will also include representatives from the Indonesian business and the academic community. The negotiation involves different agents of the Indonesian public because the result of the negotiation will have a wide impact on the economic situation and lives of the Indonesian public. These actors have already been involved in the negotiations since the beginning of the agreement, when the Joint Study Group was established. In the Joint Study Group, the actors involved will give their view and consideration on the upcoming trade agreements, whether it will bring advantage or disadvantage for Indonesia. In the negotiation process, the negotiators which are representatives from related ministries will negotiate Indonesian position in each sector recommended by the Joint Study Group.

In order to analyze and to get a better understanding of the relationship between the dependent and independent variables in this thesis, the actors or agents that are going to be analyzed will be limited to the Indonesian government, including the ministries included in the trade negotiation, the Indonesian parliament and the Indonesian public which will include the academic societies, non government organizations, such as Indonesia Global Justice, Central Strategic for International Studies (CSIS), etc, the business and industry associations, such as Indonesian textile associations, Indonesian Employers Associations (APINDO), Indonesian Young Entrepreneurs Associations (HIPMI), etc, and also the Indonesian Chamber of Commerce and Industry.

(20)

13 II.3.2. Interests

Interest could be defined as a set of goals or policy objectives that are going to be achieved by actors or agents by using foreign economic or political policy.38 Interest could be seen in two ways; “interest that shaped political and economic behavior and as an analytical tool to describe, explain and asses nation’s foreign policy.”39

The interest in this thesis will be seen as the interests that shape political and economic behavior of the actors. According to the constructivist approach, interests are divided into two categories, material interest and non-material or ideational interests that are based on ideas of the actors involved. As Scott Burchill stated in his book, “identities and interests of human beings are a product of these shared ideas rather than being natural endowments. Constructivists believe that these shared ideas and normative practices are a key determinant of state behavior. Constructivists believe that national interest should be seen as key indicator of state behavior.”40

From this definition, it can be concluded that other than to be determined objectively, interests are also shaped.

Constructivists believe that non-material or ideational interests play an important role in determining the interests of the agents. Constructivists assume that non-material factors shaped agents’ identities, in which those identities will lead to interpretation of the material factors, which are based on material needs such as economic capabilities, military capabilities, power owned by states, state’s position in international hierarchy, resources, trade performance, etc, which in the end shape material interests and formed action.41 Constructivists also argue that “interest are socially constructed and could be altered by the agents or actors themselves and by the interaction of the actors with international and domestic environment and also interaction with other actors.”42

Scott Burchill argues that “constructivists also believe that interest are developed, learned and re-learned over time as a consequence of experience and reflection, in which it can be concluded that interest for constructivist is not permanent and could change over time according to interaction and experience.”43

38

Oatley, Op.cit., p,12.

39 Scott Burchill, National Interests in International Relations Theory (Gordonsville, VA, USA: Palgrave

(21)

14

In a trade agreement negotiation, the interests that in general are taken into account by the negotiators are material interests. Before initiating the negotiation of the agreement, negotiators mostly take into account the trade performance of the countries involved and evaluate the costs and benefits for both countries and the sectors that will gain benefit or being harm because of the agreement. However, in recent years in Indonesia, concerns have been expressed by the Indonesian public regarding the implementation of free trade agreements. These concerns arise because of in several trade agreements that have been implemented, Indonesian trade balance experienced a deficit or did not experience the expected increase in the trade performance. Because of these concerns and past experiences, similar trade agreement negotiations are being noticed by Indonesian public. Indonesian public is getting more involved from the early beginning of the negotiation. Their opinion and perspectives that are based on the experience in refer to the previous trade agreements affect the interests and the process of the upcoming trade negotiations.

Since constructivists argue that interests are socially constructed, this thesis will look at how Indonesian government see and interpret the material interests or factors in order to get a more comprehensive understanding on the preferences of Indonesian government on IKCEPA. The material interests or factors that are going to be used in this thesis will be limited to trade performance between Indonesia and Korea, which will include the trade balance, export and import value in general and in several sectors that expected to receive benefit and disadvantage from the agreement. In order to provide a background on Indonesian public and governments perception on FTA, this thesis will also look at the trade performance between Indonesia and several trade partners who have regional or bilateral free trade agreement that have been implemented in Indonesia. This thesis will use statistics from related ministries in Indonesia, such as the Ministry of Trade of Indonesia, the Indonesian National Statistics Agency, and also the Ministry of Industry, in order to give a clear view on how the negotiators use these statistics as the material interests use to determine Indonesian basic position in the negotiation. This thesis will look on how negotiators viewed and interpret the material interests and shaped or to determine Indonesia preferences or position in the negotiation.

(22)

15 II.3.3. Perceptions

In a constructivists approach, inter-subjectivity shaped the way people look at empirical situation and social phenomena that surrounds them, which will affect preferences and guide actions in a decision-making process. Inter-subjectivity affects the preferences and the interpretation of agents in dealing with problems or situation. One of the inter-subjectivity in constructivists approach is ideas. Thomas Oatley defined ideas as “mental models that provide a coherent set of beliefs about cause and effect relations, in which in political economy is best to describe the relationship between government policies and economic outcomes. These ideas on how economy operates can become a source of the preferences that groups have for particular economic policies.”44

Constructivist described ideas as “a set of thought required by agents as motivation.”45 For constructivist, ideas should be shared by a group of people in order to have some influence. Nina Tannenwald described ideas as “mental constructs held by individuals, sets of distinctive beliefs, principles and attitudes” that provide broad orientations for behavior and policy.”46

For constructivist, “ideas are the basis for analyzing, interpreting the world and defining interests.”47

Nina Tannenwald stated in her article that ideas could be categorized into four type of ideas, which are:

“1). Ideologies or shared belief systems, in which it could be described as a systemic set of doctrines or beliefs that reflect the social needs and aspirations of a group, class, culture or states;

2). Normative beliefs, it could be described as beliefs about right and wrong and simply associated standards of behavior;

3). Cause-effect beliefs, in which it could be described as cognitive understandings of the world and provide guidelines or strategies for individuals on how to achieve their objectives; and

44

Oatley, Op.cit., 12-13.

45

Barkin, Op.cit., 36.

46 Nina Tannenwald, “Ideas and Ecplanation: Advancing the Theoretical Agenda,” Journal of Cold War

Studies, 7 no.2, (2005): 15.

47

(23)

16

4). Policy prescriptions, in which it could be described as a specific programmatic ideas that derive from causal beliefs or ideologies.”48

Constructivists argue that ideas are related to agents comprehension, history or past experiences, choices or preferences and actions in dealing with similar problems or situations.49

Based on the definition above, this thesis will limit the definition of ideas based on the cause-effect beliefs because the ideas on FTAs are highly influenced by not only global situation but also domestic situation. In this definition, ideas are seen as a result of compilation of understandings that are based on cognitive reasons, such as experience, judgment, etc. These cognitive understandings will influence on how the actors or agents interpret an issue and the decision will be taken on that particular issue. One of the forms of ideas that highly influence the interpretation and the preferences of agents in a decision-making process is perception. Perceptions are highly related with a mindset of actors or agents in responds to specific situation. A mindset itself could be described as “a conceptual tools for examining how people look and responds at specific events and problems that concern them in political or economy affairs.”50

Perception is influenced by knowledge, prejudices, and also historical experience.

Perception in international relations is related to the perception of the state and also the public. In current international affairs, there is a constant need to study public perception on international affairs. The role of the public opinion in shaping government foreign policy has increased in recent years. As Glen Fisher stated in his book, “Even in the conduct of diplomacy, today’s reality in foreign affairs is found less in the formal dimension of diplomatic practice and more in the informal and even irrational dimension which involves selective knowledge, prejudices, attitudes, and opinions of participating masses of people.”51

In foreign affairs practices, perception is affected by the way that an issue is being presented, perceived and understood.52

48 Ibid., 15 49

Abdelal, Op.cit., 71.

50

Glen Fisher, Mindset: The Role of Culture and Perception in International Relations (Intercutltural Press, Inc., 1997), 2.

51

Ibid., 11.

52

(24)

17

Because of the increase of public perception and awareness which affect the decision-making process, at the moment, the decisions are made by taking into account “the preferences of the popular perception and objectives, in which this decision have to match to public’s tolerable limits of morality or national self image.”53

Regarding government perceptions, Glen Fisher stated that “Government perceptions may vary based on its implicit purpose, which are as guardian of a given social order or tradition or as instrument of change and modernization.”54

Based on this description, perception plays an important role in the decision-making process, not only perception of the government but also the perception of public on particular issue. Perception could change the policy decisions, in which it could determine which policy choices are possible, desirable, legitimate, and appropriate in accordance with public and government perspectives.

The perceptions that are going to be analyzed in this thesis are perceptions of the Indonesian public and the government on trade agreements. The Indonesian government in recent years is starting to take into consideration the concerns and the perception of the Indonesian public on trade agreements. The perception of the Indonesian public is analyzed by looking at the public opinion on trade agreements, as published in the Indonesian media. In recent years, especially since the implementation of ACFTA, the Indonesian public awareness on trade agreements has increased. This is illustrated by the reaction of the Indonesian public toward similar trade agreements. Because of this matter, the Indonesian government is increasingly taking the Indonesian public perspectives on trade agreements into consideration. In the negotiation process, the Indonesian government includes representatives from the Indonesian business and industry associations and also representatives from the Indonesian academic society.

Based on this interaction, this thesis will analyze whether the perceptions of the Indonesian public and also the government in reference to the previous agreements has influenced the perception on IKCEPA. In order to analyze the Indonesian public and government perceptions on trade agreements, this thesis will analyze the Indonesian public perceptions through publication on the Indonesian media and academic reports or writings from the Indonesian academic society. This thesis will make some reference

53

Ibid., 67.

54

(25)

18

based on the documents published by the Indonesian government, such as publications on free trade agreements, documentations on trade negotiation which will include reports of the trade negotiations, etc.

Independent Variable

Definition Operationalization Sources

Interest Interest could be defined as a set of goals or policies that are going to be achieved by actors. This thesis will look into how the agents viewed and interpret the material interests or factors and how those interests shaped and determine Indonesia preferences in the negotiation.

The interests that are going to be analyzed are the interest of the Indonesian government on IKCEPA, including trade performance and investment rate.

Joint Study Group Report, trade statistics from related

Ministry in Indonesia, Korean investment rate in Indonesia, official or government documents on FTAs and IKCEPA.

Perception Perception could be defined as a mindset that influence on how people look at specific issues. Perception could be influenced by knowledge, prejudice, historical experience, etc. Perception in this thesis will be limited to perception of Indonesian public on RTAs.

Perceptions that are going to be analyzed are the perceptions of Indonesian public on free trade agreements.

Documents

published by the Indonesian

(26)

19

related ministry in Indonesia and also reports of the trade negotiation.

(27)

20

III. Indonesian Trade Agreements

The previous chapter discussed the theoretical framework that is used in this thesis. This thesis uses a constructivist approach because constructivists offer explanation from inter-subjective views. Constructivists believe that in international relations, not only material interests but also non-material interests play important role in policy making process. Constructivists also argue that government preferences may vary overtime and influenced by domestic and international situation and also inter-subjective factors, such as knowledge, experience or history, ideas, norms and also perceptions. In order to gain better analysis on the perception of Indonesian government and public on free trade agreements, a better understanding on the background of the perceptions is needed. Because of this particular reason, this chapter will discuss several previous regional trade agreements that Indonesia is actively participated. By discussing the previous regional trade agreements, it could provide background to analyze the perceptions of Indonesian public and government on free trade agreements and how these perceptions influence IKCEPA.

III.1. Regional Trade Agreements (RTAs)

In recent years, the numbers of regional trade agreements in the world have increased. Regional trade agreements (RTAs) could be defined as trade agreements that were made to liberalize tariffs and reduce or eliminate trade barriers, and even in recent years, the cooperation were beyond tariff liberalization among the members of the agreement, in which the members may consist of two or more countries that is not necessarily belong to the same region.55 In recent years, the scope of regional trade agreements does not only covers liberalization and reduction of tariffs and trade barriers in trade in goods, but also covers liberalization and reduction of barriers in trade in services, investments, cooperation in capacity building and even includes cooperation in mutual recognition in some agreements.

RTAs appear as trade instrument, complementary to WTO policy due to the fact that the multilateral negotiations in the WTO, particularly the negotiations of the Doha Round or Doha Development Agenda, experienced a set back or slow progress in reaching an agreement or conclusion. The multilateral negotiations or the WTO rounds

55

“Regional Trade Agreements: Scope of RTAs,” WTO (website),

(28)

21

itself have mainly objective to liberalize or lowering trade barriers in multilateral basis, such as tariffs and trade rules or regulations that are considered not comply with the WTO principles. The WTO is governed by several principles, such as encouraging non-discriminatory, trade liberalization, fair competition, binding competition and transparency and encouraging development and economic reform among the member countries of the WTO.56 In regard with the Doha Round, which was launched in November 2001, during the WTO’s Fourth Ministerial Conference in Doha Qatar, the main objective of this round is to provide a mechanism for developing countries to reach development and improve trade by reducing trade barriers and revising regulations that are related to trade.57 The Doha Round also facilitates developing countries that have been experiencing problems in implementing the WTO agreements.

Because of the reluctance of the member countries to reach an agreement to liberalize tariffs and reduce or eliminate trade barriers in multilateral basis, in which the decision will apply to all members of the WTO, member countries have started to find the alternative solution to increase or expand market access, liberalize trade tariffs and achieve further integration and economic cooperation through regional trade agreements.58 The different aspirations of the member countries regarding the type and the scope of the liberalization, the different bargaining positions, the development level of the member countries, and also the different perspectives on the mutual advantage that could be achieved are the reasons why the WTO negotiations, in particular the Doha Development agenda experienced slow progress in concluding and reaching an agreement among the members.59 These differences were strengthened by the decision-making process in the WTO, particularly related to the principle of single-undertaking, which stated that an agreement or a decision could not be reached if not all member

56

“Understanding the WTO: Principles of the Trading System,” World Trade Organization (website), accessed September 13please be consistent in the way you refer: 13 September or the other way

around?, 2012, http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm.

57 “The Doha Round,” World Trade Organization (website), accessed 10 September 10, 2012,

http://www.wto.org/english/tratop_e/dda_e/dda_e.htm.

58

Jo-Ann Crawford and Roberto V. Fiorentino, “The Changing Landscape of Regional Trade Agreements,”

Discussion Paper WTO, 8. (2005): 16.

59

(29)

22

countries and the member countries agreed to accept all the clauses that are currently being negotiated.60

The exemption for the WTO non-discriminatory principle is stated in Article XXIV of GATT, which regulates customs unions and free trade areas. This article states that countries are allowed to cooperate and develop a closer integration in order to reach a freedom of trade through RTAs. RTAs are made to facilitate trade among the countries involved and not intended to be made as trade barriers for countries outside of the agreement.61

The dynamic and time-path assumption on the function of RTAs for the multilateral trading system, in particular the WTO mechanism, is divided into two assumptions, in which RTAs could become a stumbling block or building block for the WTO. Economists that see RTAs as stumbling block for the WTO argue that RTAs could disrupt the balance of world trade particularly because trade liberalizations were based on preferential basis and in contrast or do not comply with the WTO most favored nation (MFN) principle. This view assumes that since RTAs do not comply with MFN principle, it will create a situation where the marginalized countries will become more marginalized by it.62 They also believe that RTAs could decrease the effectiveness and the trust or confidence of countries toward multilateral trading system and decrease the interest of countries to cooperate and liberalize trade in a multilateral basis.63 This is also known as the negative impact of the spaghetti bowl effect, in which countries tend to focusing more on their interest in the negotiation process and maintenance of cooperation and agreement in regional level so they tend to ignore the responsibility in the multilateral level. The spaghetti bowl effect occurs when RTAs start to increase and tend to overlap one another.64 RTAs are also considered to increase trade barriers and protectionism for non-member countries.

For economists who believe that RTAs could become a building block for multilateral world system, RTAs might be in contrast with the WTO non-discriminatory

60

Euan McMillan, “Doha Decision-Making: Implications of the Consensus and Single-Undertaking Principles for Developing Countries,” Commonwealth Trade Hot Topics, 71 (2010): 1-5.

61 “Article XXIV of GATT 1994: Territorial Application-Frontier Traffic-Customs Unions and Free-trade

Areas,” WTO (website). Accessed October 15, 2012,

http://www.wto.org/english/res_e/booksp_e/analytic_index_e/gatt1994_09_e.htm

62 Crawford, op.cit., 16. 63

Ibid.

64

(30)

23

principle, but are still considered to be complementary to the WTO agreement. RTAs could function as a mechanism for countries to negotiate commitments and rules that could not be achieved or negotiated in a multilateral basis. RTAs cover a wide range of issues that are specific to the relations between countries that are engaged in RTAs negotiation. Because of the wide range or scope of issues that are covered by RTAs, RTAs could be considered as WTO-plus arrangement. The issues that are considered to be WTO-plus arrangement include investment, government procurement, services, intellectual property, trade facilitation, environment, labor standards and competition policy.65 By engaging in RTAs, a higher level of economic integration is expected to be achieved and the level of economic development could be equally spread internationally.66 There has been an assumption that when RTA reached the level of full liberalization of the products, the participating countries will gain a high level of competitiveness and production maturity which makes them able to compete in the international forum.

In the Asia Pacific region, FTAs or RTAs are seen and used by policy makers as not merely a trade policy but also part of foreign and economic policy. As Rahul Sen and Sadhana Srivastava state in their article, “FTAs in Asia are seen as a norm”, which has particular meaning that with the intention to achieve the goal to expand their market and particularly gaining more market access in countries that are considered potential to be their partner and also recognizing the necessity to increase economic cooperation in the region, countries in the Asia Pacific region tend or prefer to pursuit cooperation in the form of FTAs or even when they do not interested or take initiative in pursuing policy in supporting FTAs, countries in the Asia Pacific were involved in FTAs because of the majority of the countries in the region were participating in FTAs, which made FTAs in Asia Pacific region grow significantly. Other reason countries in Asia Pacific participate in FTAs is particularly because of FTAs effectiveness to achieve economic cooperation and trade liberalization with their trading partners and in the same time pursuing multilateral trade liberalization in the WTO.67 For this particular reason, RTAs in Asia are growing. Indonesia as one of the countries that located in Asia Pacific region

65

Loc.cit.,72.

66

Loc.cit., 34.

67 Rahul Sen and Sadhana Srivastana, “ASEAN’s Bilateral Preferential Trade and Economic Cooperation

(31)

24

is certainly not at liberty from those trends. For several years, Indonesia has been actively engaged in several regional and bilateral trade agreements. To learn more about Indonesia experience with regional and bilateral trade agreements, next section will describe Indonesian trade agreements as one of the countries that located in Asia and have been actively engaged in several RTAs.

III.2. Indonesian Trade Agreements

Since Indonesia experienced a slowdown in its economic growth in 1980-1985, the Indonesian government decided to reform their economic policy to become more outward-looking by increasing investment and non-oil and gas export in order to enhance their economic growth.68 As part of the policy, Indonesia became a member of the WTO on January 1, 1995, and ever since has been committed to support international trade, in particular trade liberalization by actively engaging in trade negotiation and liberalizing or reducing their tariffs and trade barriers. In the WTO scheme, Indonesia committed to reduce its bound tariffs to 40% or less for 8877 goods or around 94.6% of its total goods in 10 years period.69 Other than its commitment to lower their tariffs, Indonesia also committed to eliminate 98 of their non-tariff barriers for iron and steels in the period of 10 years, in which it ended in 2004.70

The economic crisis in 1997 also encouraged Indonesia to further liberalize its economy. During this period, Indonesia received aid from the IMF in order to stabilize its currency. As one of the conditions to receive this aid, the IMF mandated Indonesia to initiated structural adjustment policies. The structural adjustment policies formulated by the IMF include tariff reduction to 0-5%, liberalization of restrictions in investment sector, especially in wholesale and retail sectors, and other tariff reduction and liberalization in trade protection in various sectors.71 These structural adjustment policies and the economic reform brought Indonesia into an open trade era. In the open trade era and in order to support the outward-looking policy and also international trade, Indonesia has been actively participating in several RTAs. This section will describe

68

Hadi Soesastro and M. Chatib Basri, “The Political Economy of Trade Policy in Indonesia,” ASEAN

Economic Bulletin 22, No. 1 (April 2005): 3.

69

Sulistyo Widayanto, Prosedur Notifikasi WTO untuk Transparansi Kebijakan Impor Terkait Bidang

Perdagangan: Kewajiban Pokok Indonesia Sebagai Anggota Organisasi Perdagangan Dunia (World Trade Organization) (Jakarta: Directorate of Multilateral, Ministry of Trade of Indonesia, 2011), 4.

70

Ibid.

71

(32)

25

further on trade agreements that have been implemented and raised some concerns among the Indonesian public.

III.2.1. ASEAN Free Trade Agreements (AFTA)

The Association of South East Asian Nation (ASEAN) was established on August 8, 1967 with the signing of ASEAN Declaration in Bangkok, Thailand. In its establishment, the ASEAN was founded by Indonesia, Malaysia, Thailand, Singapore and The Philippines. In the later stages, the membership of the ASEAN increased to include Brunei Darussalam, Vietnam, Lao DPR, Myanmar and Cambodia. The ASEAN was established as an effort to promote cooperation among its members in social, cultural, economic, security and also politics. By establishing the ASEAN, member countries hope that the ASEAN could be able to bring economic growth, economic and social development as well as to bring stability and peace in the region, and many other forms of advantages.72

In terms of economic cooperation, the ASEAN decided to enhance cooperation among its member countries by establishing AFTA. AFTA was the first free trade agreement that Indonesia is actively taken part. The signing of the Framework Agreement on Enhancing ASEAN Economic Cooperation on January 28, 1992 in Singapore showed ASEAN member countries, not only the original member countries who signed the agreement but also countries that joined ASEAN in the later stage, commitment to enhance economic cooperation by liberalizing tariffs and reducing or eliminating non-tariff barriers through AFTA mechanism. The basis for tariff reduction schedule, including the product coverage of AFTA is regulated in the Common Effective Preferential Tariff (CEPT) signed on January 28, 1992 in Singapore. By establishing AFTA, member countries hoped that ASEAN’s competitiveness could be increased. In the 9th ASEAN Summit in Bali, Indonesia, the ASEAN head of states agreed to establish ASEAN Community in three sectors, political, economy and socio-cultural. This declaration is known as Declaration of ASEAN Concord II (Bali Concord II).

As a continuation of Bali Concord II and the Framework Agreement on Enhancing ASEAN Economic Cooperation, an agreement on trade in goods (ASEAN Trade in Goods Agreement (ATIGA) was signed on February 26, 2009 in Thailand.

72

(33)

26

The ATIGA was an enhancement of the CEPT-AFTA to be a more comprehensive legal instrument, which meant that ASEAN agreements related to trade in goods will be superseded by the ATIGA. The ATIGA marked a further commitment of all ASEAN member countries to liberalize tariff in order to achieve economic integration and realizing the ASEAN Economic Community (AEC) which is expected to be established by 2015. By establishing AEC, ASEAN member countries hope that ASEAN will become a single market and production base, which it could lead to the creation of a regional economic integration and also increasing region’s economic development and competitiveness in global economy.73 According to the ATIGA, the ASEAN member states should eliminate all tariffs for goods that are listed in the inclusion lists by 2010 for ASEAN-6 and 2015 or 2018 for Cambodia, Laos, Myanmar and Vietnam (CLMV).74 Other than enhancing cooperation in trade in goods, in order to establish ASEAN Community, ASEAN members also cooperate in other sectors such as trade in services, investment, infrastructure, communication, trade facilitation, customs integration, tourism, education, etc.

Before the signing of the ATIGA, AFTA was already been implemented in Indonesia and was marked with legal enactment and the issuance of Ministry of Finance Decree No. 28/2005 (Peraturan Menteri Keuangan No. 28/PMK.010/2005) on May 18, 2005. The decree regulates tariff reduction and elimination from 5% to 0% for 1.571 tariff lines, in which the amount of the tariff lines will be added in several phases until it reach the target of full tariff reduction and elimination in 2010.75 By implementing AFTA or ATIGA, Indonesia is hoping to be able to gain some advantages from the agreement. One of the advantages that Indonesia is hoping to reach is to be able to expand its market and increase its export to ASEAN market, since ASEAN has a vast amount of population, approximately 591 million people.76 Indonesia also hopes to be able to increase their non-oil and gas export, for example in agricultural sector such as

73

ASEAN Secretariate, ASEAN Economic Community Blueprint. (Jakarta: The ASEAN Secretariat, 2008), 5.

74 ASEAN Secretariat, “ASEAN Trade in Goods Agreement,” ASEAN Secretariat (website), accessed

September 18, 2012, http://www.aseansec.org/22223.pdf. ASEAN-6 refers to Indonesia, Brunei

Darussalam, Malaysia, Singapore, Philippines and Thailand. CLMV refers to Cambodia, Laos, Myanmar and Vietnam. ASEAN member countries agrees to give extension to CLMV countries to eliminate their tariff up to 2018 for several products that are included in sensitive products list.

75

Ministry of Finance of Indonesia, “Harmonisasi Tarif Bea Masuk, Tarif Bea Masuk CEPT for AFTA, dan Tarif Bea Masuk dalam Rangka ASEAN-China Free Trade Area”, Ministry of Finance of Indonesia (website). Accessed October 22, 2012. http://www.tarif.depkeu.go.id/Data/?type=art&file=mfn.htm.

76

“Mendag: Yang Penting Punya Rencana Aksi,” Antaranews, August 17, 2010. Accessed November 2,

Referenties

GERELATEERDE DOCUMENTEN

The influence of tire tread pattern, compound and construction as well as the influence of road roughness, acoustic absorption and driving speed on the exterior tire-road

For a given forwarding distance and a given node density our model analysis is able to capture the full distribution of (i) the end-to-end delay to have the message forwarded the

Volgens Frankfurt is het in dit geval echter niet relevant of Jones vooraf had besloten zijn werkgever wel of niet te chanteren: Jones wordt in zijn handelen volledig gestuurd

Edited and reviewed by: Si Wu, Peking University, China *Correspondence: Manish Sreenivasa manishs@uow.edu.au Massimo Sartori m.sartori@utwente.nl Received: 23 January 2019 Accepted:

If a company is planning to invest in a country with a high level of corruption, and where it is obvious that the company has to engage in unethical behavior, it is to the

“If Agent i deliberately stops conceding before reaching the agent’s own reservation utility from time period t onward, and all other agents use the reactive concession strategy

http://www.japantimes.co.jp/news/2014/05/06/national/politics-diplomacy/eu-demands-human-rights-cla use-linked-economic-partnership-agreement-japan/.. historic step forward in

This is done by turning the AfCFTA impact on for African countries, using the estimated average impact of trade agreements on exports for other developing countries.. The