Indonesia – Import Licensing Regimes: GATT Rules for Agricultural Trade?

27 Pages Posted: 6 Dec 2018

See all articles by Dukgeun Ahn

Dukgeun Ahn

Seoul National University

Arevik Gnutzmann-Mkrtchyan

European University Institute - Economics Department (ECO); Leibniz Universität Hannover - Faculty of Economics and Management

Date Written: November 2018

Abstract

This paper examines two disputes brought by the United States and New Zealand in response to a series of import sanctions for agricultural products imposed by the Indonesian government to promote food self-sufficiency. We document the heterogeneous effect the sanctioning measures had on Indonesia’s partners. We argue that Indonesia’s import licensing regimes acted as high, sometimes prohibitive, fixed cost of exporting. Frequent changes of regulation provided additional challenges and increased costs of exporting. These properties determined the differential impacts of Indonesia’s measures where some sustained significant market losses while other large exporters, in particular Australia, following a short decline strengthened market position and export levels.

Keywords: Import licensing regimes, food self-sufficiency, agricultural import ban, fixed costs

Suggested Citation

Ahn, Dukgeun and Gnutzmann-Mkrtchyan, Arevik and Gnutzmann-Mkrtchyan, Arevik, Indonesia – Import Licensing Regimes: GATT Rules for Agricultural Trade? (November 2018). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2018/56, Available at SSRN: https://ssrn.com/abstract=3293743 or http://dx.doi.org/10.2139/ssrn.3293743

Dukgeun Ahn (Contact Author)

Seoul National University ( email )

Graduate School of International Studies
Sillim, Kwanak-gu
Seoul, 151-742
82-2-880-9249 (Phone)

HOME PAGE: http://gsis.snu.ac.kr

Arevik Gnutzmann-Mkrtchyan

European University Institute - Economics Department (ECO) ( email )

Villa San Paolo
Via della Piazzuola 43
50133 Florence
Italy

Leibniz Universität Hannover - Faculty of Economics and Management ( email )

Koenigsworther Platz 1
Hannover, 30167
Germany

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