International Trade Law: Definition And Case Example

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International trade law


  • · Schmitthoff

International trade law is the body of rules governing commercial relationship of a private law nature involving different nations (Schimttoff, 1986)

  • · M. Rafiqul Islami

international trade law is a wide ranging, transnational, commercial exchange of goods and services between individual business persons, trading bodies and States. (Islami, 1999)

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  • · Michelle Sanson

International trade law can be defined as the regulation of the conduct of parties involved in the exchange of goods, services and technology between nations. (Sanson, 2002)

  • · Hercules Booysen

booysen does not give a strict definition, because he realize that legal science is very complex. So he just mention 3 elements of the definition of international trade law.

  • · international trade law may also be regarded as a specialised branch of international law

· International trade law can be described as those rules of international law which are applicable to trade in goods, services and the protection of intellectual property

  • · the extraterritorial legislation (Booyen, 1999)

so if we if we see the opinions of the three experts we can conclude that international trade law is refers to regulations governing relations between countries in regulating their domestic markets related to international trade.


The EU has imposed anti-dumping duties on Indonesian biodiesel products since 2013 with a dumping margin of 8.8 percent -23.3 percent. Since then, Indonesia’s biodiesel exports to the EU decrease.Based on statistical data from the central statistical agency, in the 2013-2016 period, Indonesia’s biodiesel exports to the EU fell by 42.84 percent, from 649 million US dollars or Rp. 8.8 trillion (exchange rate of Rp. 13,500) in 2013 dropped to 150 million US dollars or IDR 2.02 trillion in 2016.

The WTO Dispute Resolution Panel has seen that the EU is not consistent with the WTO Anti Dumping Agreement regulations during the dumping investigation until the ADD determination of biodiesel imports from Indonesia.

Agreements that have been breached by the EU is

  1. The EU does not use data sent by Indonesian exporters in calculating production costs.
  2. The EU does not use cost data incurred in Indonesia on the determination of the normal value for the calculation of margin dumping.
  3. the EU has set limits on profits that are too high for the biodiesel industry in Indonesia.
  4. The method of determining export prices for one of Indonesia’s exporters is not in line with the provisions.
  5. The EU applies a tax that is higher than margin dumping.
  6. The EU cannot prove that the import of biodiesel from Indonesia has a detrimental effect on the price of biodiesel sold by the EU domestic industry. (Fauzi, 2018)
  7. Islami, M. R. (1999). International Trade Law. Australia: LBC Information Services.
  8. Sanson, M. (2002). Essential International Trade Law. Sydney: Cavendish.
  9. Booyen, H. (1999). International Trade Law on Goods and Services. pretoria: Interlegal cc.
  10. Schimttoff, C. M. (1986). The export trade: The law and practice of international trade. London: Stevens & Sons.
  11. Fauzi, A. (2018, January 26). Sengketa Biodiesel dengan Uni Eropa, Indonesia Akhirnya Menang Artikel ini telah tayang di dengan judul ‘Sengketa Biodiesel dengan Uni Eropa, Indonesia Akhirnya Menang’, Retrieved from


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