INDONESIA'S CLOVE CIGARETTES DIPLOMACY IN COUNTERING THE UNITED STATES POLICY IN THE WORLD TRADE ORGANIZATION (2009-2013)

Abstract

This research analyzes the process of settling the dispute of clove cigarettes between the US and Indonesia in the WTO and elaborate Indonesia's diplomacy in responding the US on Dispute Settlement Body. Indonesia sent complains to the Dispute Settlement Body of WTO after the publication of the US health regulation regarding flavored cigarettes. This research is important to study Indonesia's diplomacy towards a dispute in safeguarding its interest. The timeframe of this research is from 2009 to 2013 because the dispute settlement process was happening in that period of time. Using Qualitative and Descriptive methods, this research uses Library Research to find the information from some reliable sources like official documents and publication. Some information has been found that Section 907 from the US Smoking Prevention regulation was seen as a discriminatory regulation by Indonesia. Indonesia complained the policy of banning flavored cigarettes in the US, including clove cigarettes which were mostly imported from Indonesia, while menthol cigarettes became an exception. Indonesia claimed that the US has violated some WTO Agreements regarding act of discrimination after the act was seen as discrimination to clove cigarettes as imported product to protect the domestic product like menthol cigarettes. After the failure of bilateral consultations process, the case was brought to the greater level of process like Panel and Appellate Body. Indonesia won the case and the US was suggested to adopt the recommendation of the Dispute Settlement Body.