THE ROLE OF WORLD TRADE ORGANIZATION (WTO) IN THE PRACTICE OF DISPUTE SETTLEMENT BODY IN THE CASE: INDONESIA-EUROPEAN UNION BIODIESEL & NICKEL DISPUTE IN THE YEAR 2018-2022

Abstract

Free trade has opened the opportunity for countries to exchange commodities and to preserve their effort to fulfill domestic demands. In trade dispute as a phenomenon has reoccurring between countries and is very common. World Trade Organization has the capacity to authorize what is considered to be fair trade based on its member countries agreed-upon clause. The existence of this international organization ensures that member countries act in accordance to the ground breaking agreements. Indonesia-EU biodiesel and nickel dispute offers the opportunity to study the role of one of the World Trade Organization’s General Council in accommodating the dispute in the case of Crude Palm Oil, biodiesel discrimination, and measures related to raw materials. This manuscript aims to provide the analysis of the role of WTO Dispute Body Settlement in the case of biodiesel and nickel dispute. To provide a clear scrutiny, this manuscript utilizes Barnett and Adler’s concept h to study International Organization using both institutional and regime approach with the support of Barkin’s regime and institutional approach to see how International Organization carries its role. The framework allows this analysis to define the affair of the dispute, the role of the institution, and the significance effect on certain agendas. The scopes of this analysis are evolved around, first, the role of the World Trade Organization as an international institution in regard to the GATT. To discuss this, an overview of the biodiesel and nickel ore dispute lawsuit will be thoroughly analysed using the available data from 2018 until 2022. World Trade Organization provides the forum for both countries to resolve the issue. Hence, the second scope is the injury and damage caused by the two countries and the obligations resulting from the panel results of the jurisdiction. Consequently, the third focus in this analysis is the significance of WTO Dispute Settlement verdicts and the prospects of the relationship of Indonesia and the European Union to which the role IOs carry according to Barnett & Adler concept.