JRSSEM 2023, Vol. 02, No. 8, 1688 – 1693

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

DOI: 10.36418/jrssem.v2i08.383 https://jrssem.publikasiindonesia.id/index.php/jrssem

THE ROLE OF THE WTO IN RESPONDING TO

INTERNATIONAL TRADE ISSUES

Dodi Sugianto

Faculty of Law, Pamulang University, Indonesia

e-mail: dosen02735@unpam.ac.id

*Correspondence: dosen02735@unpam.ac.id

Submitted

: 21

February 2023

Revised

: 13

March 2023

Accepted

: 21

March 2023

Abstract: The World Trade Organization, also known as the WTO, is a global organization that

specifically oversees international trade. The World Trade Organization (WTO) was founded to

realize fair dispute resolution and more orderly, smooth, free, liberal, transparent, and predictive

global trade. The signing of various agreements among WTO member states on international trade

regulations marked the achievement of the organization's goals. Here are the objectives of this

study: 1) Studying international trade issues; 2) Understanding the role of the World Trade

Organization (WTO) in addressing issues relating to international trade. To fully explain the research

topic, qualitative research is used to describe and analyze it. Relevant literature such as books,

journals, term papers, and articles are used in research, such as the internet. The study found that

international trade issues can be broken down into six categories, namely as follows: 1) Technical

preparation, 2) State security, 3) Export and import implementation policies, 4) Product preparation,

5) Lack of trust, and 6) Connections with international organizations Trade barriers can be removed

by the WTO to protect consumers, stop the spread of disease, or preserve the environment to solve

these problems.

Keywords: Trade; International Issues; WTO.

Dodi Sugianto | 1689

INTRODUCTION

Global economic globalization took off

very quickly after World War II. The rapid

pace of economic activity between

countries, especially in the field of

international trade, is proof of this. At the

end of the cold war, globalization

accelerated economic integration,

increased the involvement of actors in

international affairs, and accelerated the

implementation of various policies. One of

the beginnings of the state that wanted a

liberal system to run the free market was

the establishment of

Bretton Woods

New Hampshire in 1994. The International

Monetary Fund (IMF), the World Bank, and

the International Trade Organization (ITO)

were subsequently established to establish

postwar monetary arrangements under

which the US dollar would replace gold as

an international medium of exchange

(Kurniawardhani, 2021).

According to economists, countries

around the world have increased their

incomes as a result of trade liberalization by

taking advantage of their comparative

advantages and forcing previously less

productive resources to be more

productive. Each country on the planet has

its unique pool of resources, which leads to

interdependence among countries that

cannot meet their own needs and depend

on other countries. Since each country

opens itself to the market through the free

trade provisions incorporated into its

policies, no single country can escape this

dependence (Kurniawardhani, 2021).

The issue of trade disputes is

inseparable from the trading activities in

each country. Because each nation is an

entity that is interdependent to meet its

needs, there is competition and

interdependence between countries to

meet these needs. Trade cooperation is

used to meet the needs of each country.

The economy of each country is supported

by trade, which is an important part of their

cooperation. Each country carries out

international trade cooperation to improve

the welfare of the people of a country,

stimulate competition between countries,

and of course, give rise to trade problems

such as frequent international trade

disputes. Countries that violate

international trade terms that have been

agreed upon by member states of an

international trade regime, such as the

World Trade Organization

(WTO), give rise

to trade disputes (Prasetyo, 2022).

The mutually agreed provisions are

expected to allow the World Trade

Organization (WTO) to bridge the interests

of all countries in the field of trade. It is

proposed that the World Trade

Organization (WTO) establish conditions

that are reciprocal and favorable to both

parties so that all countries can benefit

from it. The trade model was introduced by

the World Trade Organization (WTO), where

trade between countries is expected

(Anggraeni, 2017).

In theory, the World Trade

Organization is a tool for promoting fair

and orderly free trade around the world.

The World Trade Organization (WTO)

adheres to several guiding principles in its

mission to promote free trade. The

following are some of the guiding

principles of the World Trade Organization

(WTO): National Treatment, the focus of

reciprocity (also known as reciprocity), the

1690 | The Role of The WTO In Responding To International Trade Issues

principle of tariff protection, and the

principle of quantitative border banning are

all principles.

Because Indonesia ratified the World

Trade Organization Establishment

Agreement (WTO Approval) through law

No. 7 of 1994. As a result, Indonesia is

required by law to incorporate the

provisions of the WTO Approval Trade

Remedies into its national law. As a

member of the WTO, Indonesia has the

freedom to improve and practice its

national legal procedures, which are

automatically mandatory in line with WTO

regulations (Hassanah, 2021).

One of the international organizations

that specifically controls the problem of

interstate trade is the

World Trade

Organization

(WTO). As a result of the

negotiations that created the signing of

agreements by member states, the WTO's

multilateral trading system is governed by

agreements that include the bottom

provisions of international trade. The

government is obliged to comply with the

agreement in carrying out its trade policy

because it is an agreement between

member states. Although signed by the

government, its main purpose is to

facilitate trade between exporters,

importers, and producers of goods and

services.

The World Trade Organization

(WTO) reduces and removes various

barriers that can hinder the smooth trade

of goods and services to encourage trade

between countries (Anggraeni, 2017).

The term "trade improvement" usually

refers to government actions or policies

designed to reduce the impact of imports

on industries within the country. Because

unfair and honest imports can often harm

the industry in the country until this trade

law remedy is needed. Imports of foreign

objects at dumping prices, or prices on a

fair price basis, as well as imports of

subsidized foreign objects, are examples of

dishonest imports that harm the domestic

industry. Meanwhile, honest imports that

can harm the domestic industry are those

whose numbers are growing fast and have

no characterizing (Sasmita, 2015).

Here is the formulation of the problem

based on the background presented: 1)

What are the issues related to international

trade? 2) How does the World Trade

Organization (WTO) respond to issues

related to international trade? The

following are some of the objectives of this

study: 1) Studying international trade

issues, and 2) learning more about how the

World Trade Organization (WTO) handles

international trade issues.

MATERIALS AND METHODS

Qualitative research is the method

used. According to Susan E. Wyse,

qualitative research is research that is more

exploratory and is used to understand the

reasons, opinions, and motivations behind

behavior. Researchers can use qualitative

research to describe and analyze research

topics so that they can be explained in full.

Literature research is a method that

researchers use to collect data. Literature

research is a method of collecting data by

looking at various relevant literature such

as books, journals, papers, articles, and the

internet {Formatting Citation}

The study makes use of different types

of secondary data collected from articles,

websites, and other literary sources.

Dodi Sugianto | 1691

Specifically related to the role of the WTO

in responding to international trade issues,

researchers use qualitative data to describe

and analyze existing research issues.

Qualitative data analysis with a secondary

analysis approach is a method used to

describe various practical analyses of

secondary data. The approach known as

secondary analysis utilizes existing data to

find new research responses from either

existing research or new research (Fadli,

2021).

In this study, researchers used the

deductive writing method. The deductive

writing style is used to first describe the

research problem in general and then draw

specific conclusions about the problem of

tensions in international trade.

RESULTS AND DISCUSSION

Qualitative research is the method

used. According to Susan E. Wyse,

qualitative research is research that is more

exploratory and is used to understand the

reasons, opinions, and motivations behind

behavior. Researchers can use qualitative

research to describe and analyze research

topics so that they can be explained in full.

Literature research is a method that

researchers use to collect data. Literature

research is a method of collecting data by

looking at various relevant literature such

as books, journals, papers, articles, and the

internet (Dwiyanto, n.d.) .

The study makes use of different

types of secondary data collected from

articles, websites, and other literary

sources. Specifically related to the role of

the WTO in responding to international

trade issues, researchers use qualitative

data to describe and analyze existing

research issues. Qualitative data analysis

with a secondary analysis approach is a

method used to describe various practical

analyses of secondary data. The approach

known as secondary analysis utilizes

existing data to find new research

responses from either existing research or

new research (Fadli, 2021).

In this study, researchers used the

deductive writing method. The deductive

writing style is used to first describe the

research problem in general and then draw

specific conclusions about the problem of

tensions in international trade.

CONCLUSIONS

International trade problems are

divided into six factors, namely: (1)

Technical preparation, (2) State security, (3)

Policy on the implementation of import

exports, (4) Preparation of goods, (5) Lack

of trust, and (6) Connections with

international organizations. The role of the

WTO in overcoming these problems is to

remove trade barriers to protect

consumers, stop the spread of disease, or

protect the environment. A country is

obliged to correct its actions by WTO trade

rules if it violates those rules. Countries that

continue to violate WTO rules must pay

compensation or restitution in the form of

market access policies. If a case has been

decided and the losing country must follow

the panel's report or the appeal report's

1692 | The Role of The WTO In Responding To International Trade Issues

recommendation. In practice, dispute

resolution becomes very important

because it helps maintain a balance of

rights and responsibilities of member

states.

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