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"This thesis uses general equilibrium model to examine the economic impact of ASEAN-China Free Trade Area (ACFTA) on Indonesia. The analysis covers how price and quantity change in response to tariff liberalization under ACFTA framework. Demand and supply elasticity is needed to calculate welfare effects. Difference-in-differences method is applied to estimate demand elasticity while supply elasticity is calculated through Instrumental Variable (IV) regressions using tariff as an instrument. The results show that Indonesia's demand is elastic enough and supply to Indonesia is fairly elastic. Indonesia consumers are willing to substitute products between different sources due to price changes. ACFTA would increase production quantity for all member countries but had insignificant effect on reducing price of goods. Furthermore, I confirm result from existing literature that trade creation effect is dominated than trade diversion effect."

"[Masyarakat di wilayah perbatasan Kalimantan Barat – Sarawak telah lama melakukan kegiatan perdagangan lintas batas untuk memenuhi kebutuhan sehari-hari yang kemudian diformalkan dalam bentuk perjanjian bilateral Border Trade Agreement tahun 1970. Pergeseran paradigma ekonomi di wilayah ini menyebabkan berubahnya kepentingan perdagangan lintas batas dari semula bersifat tradisional, hingga kini lebih mirip dengan perdagangan internasional. Sayangnya, potensi ini tidak diakomodasi dengan peraturan hukum yang baik serta sarana dan prasarana yang mapan. Alhasil, kegiatan ekonomi di wilayah perbatasan ini tidak berjalan dengan baik. ASEAN Economic Community 2015 memberikan mandat untuk mendorong liberalisasi perdagangan dengan tujuan meningkatkan perdagangan intra-ASEAN. Perdagangan lintas batas di wilayah perbatasan merupakan salah satu kegiatan utama dari konsep free flow of good dalam perdagangan bebas. Penelitian ini akan dilakukan untuk memberikan analisa terkait implikasi penerapan AFTA dengan bentuk perdagangan lintas batas di wilayah perbatasan saat ini dan kebijakan pemerintah pusat dan pemerintah daerah dalam usaha peningkatan perdagangan lintas batas di wilayah perbatasan Kalimantan Barat – Sarawak. Ditemukan bahwa liberalisasi perdagangan lintas batas di wilayah perbatasan akan mendorong integrasi ekonomi regional ASEAN. Pemerintah Indonesia telah berlaku aktif dalam peningkatan perdagangan lintas batas di wilayah perbatasan Kalimantan Barat – Sarawak dengan ikut serta dalam kerjasama subregional ASEAN dan mengimplementasikkannya ke dalam peraturan nasional.

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Communities in the border region of West Kalimantan - Sarawak has long been conducting border trade to meet their daily needs which are then formalized in the form of Border Trade Agreement in 1970. The shifting economic paradigm in this region led to changes in the interest of border trade from a traditional trade to a more formal international trade. Unfortunately, this potential is not accommodated with legal regulations as well as established infrastructures and facilities. As a result, economic activity in the border region is not going well. ASEAN Economic Community 2015 provides a mandate to promote trade liberalization with the aim of increasing intra-ASEAN trade. Border trade is one of the main activities of the free flow of good concept in free trade. This study will be conducted to provide analysis related to the implications of the of AFTA to border trade in this border region, and policies of the central government and local governments in the efforts to increase border trade in West Kalimantan - Sarawak. It was found that the liberalization of border trade will encourage regional economic integration of ASEAN. The Government of Indonesia has been active in the improvement of border trade in border areas of West Kalimantan - Sarawak by participate in the ASEAN sub-regional cooperation and implement it into national legislation., Communities in the border region of West Kalimantan - Sarawak has long been conducting

border trade to meet their daily needs which are then formalized in the form of Border Trade

Agreement in 1970. The shifting economic paradigm in this region led to changes in the

interest of border trade from a traditional trade to a more formal international trade.

Unfortunately, this potential is not accommodated with legal regulations as well as

established infrastructures and facilities. As a result, economic activity in the border region is

not going well. ASEAN Economic Community 2015 provides a mandate to promote trade

liberalization with the aim of increasing intra-ASEAN trade. Border trade is one of the main

activities of the free flow of good concept in free trade. This study will be conducted to

provide analysis related to the implications of the of AFTA to border trade in this border

region, and policies of the central government and local governments in the efforts to

increase border trade in West Kalimantan - Sarawak. It was found that the liberalization of

border trade will encourage regional economic integration of ASEAN. The Government of

Indonesia has been active in the improvement of border trade in border areas of West

Kalimantan - Sarawak by participate in the ASEAN sub-regional cooperation and implement

it into national legislation.]"

"Skripsi ini membahas pengaturan tindakan safeguard dalam ketentuan World Trade Organization (WTO), yaitu Pasal XIX The General Agreement on Tariffs and Trade (GATT) dan Agreement on Safeguards (SA). Dalam menerapkan tindakan safeguard, harus diperhatikan unsur prosedural dan substantifnya. Dalam unsur prosedural, harus dipenuhi langkah-langkah investigasi, notifikasi, dan konsultasi. Dalam unsur substantif harus diperhatikan kenaikan impor yang menyebabkan kerugian serius atau ancamannya terhadap industri domestik. Selain itu, terdapat batasan-batasan yang harus diperhatikan dalam mengenakan tindakan safeguard terhadap negara lain, khususnya terhadap negara-negara berkembang. Negara-negara berkembang memiliki hak khusus berdasarkan Pasal 9.1 SA yang dapat dikecualikan atas dikenakannya tindakan safeguard, jika memenuhi persyaratan de minimis levels. Selanjutnya, skripsi ini membahas kasus tindakan safeguard di negara-negara berkembang terkait Pasal 9.1 SA, yaitu kasus US - Line Pipe (2002), US - Steel Safeguards (2003), dan Dominican Republic - Polypropylene Bags and Tubular Fabric (2012).

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This thesis studies the regulations concerning safeguard measure under the provisions of World Trade Organization (WTO), which are Article XIX of The General Agreement on Tariffs and Trade (GATT) and Agreement on Safeguards (SA). In order to apply safeguard measure, the procedural and substantive elements must be observed. Procedurally, it shall meet the requirements of investigation, notification, and consultation. Substantively, it shall consider the increase of import that causes a serious injury or threat thereof to the domestic industry. Furthermore, there are limits in applying safeguard measure to other countries, especially developing countries.

Developing countries have special rights pursuant to Article 9.1 SA, where they can be excluded from the safeguard measure application, if they fulfill the requirement of de minimis levels. This thesis, additionally, studies some cases of safeguard measure in developing countries pursuant to Article 9.1 SA, which are US - Line Pipe (2002), US - Steel Safeguards (2003), and Dominican Republic - Polypropylene Bags and Tubular Fabric (2012)."