Developing a Trade Remedy Impact Assessment Methodology for the Indonesian Ministry of Trade

The Project at A Glance

Trade remedies are trade policy tools to cope with ‘unfair’ or ‘distortive’ trade practices. ‘Unfair’ trade comes in many forms and guises, such as dumping, subsidisation, cartel agreements, price-fixing, the abuse of a dominant position on the market among others. Trade remedy measures aim to protect domestic industries from the harmful effects of unfair or increasing imports. However, these measures themselves might have trade-distortive effects or be used in the disguise of trade protectionism. Beyond trade distortions, they may also alter distributional effects, affect vested interest and access to resources among others. From a socio-economic dimension, there may be effects on employment.
International Economics (IEC), with funding from ARISE+ Indonesia, provided technical assistance to the Ministry of Trade of Indonesia in developing a trade remedy impact assessment methodology, as well as an implementation plan for testing the methodology.

What We Found

The project’s overall objective was to strengthen the institutional capacity of Indonesian government officials in the use of comprehensive methodologies to analyse the socio-economic impact of trade remedies as part of the investigation process. The team developed an assessment methodology and tested it in a scenario of ongoing anti-dumping and safeguard cases and for assessing the impact of trade remedies in a set period in the past.

Our Strategy and Impact

Through consultation with relevant stakeholders, International Economics provided a Gap Analysis to identify priorities and any issues, deficiencies or shortcomings that need to be addressed to improve the trade remedy policy framework, facilitate informed decision-making on the allocation of limited resources and act as the foundation for the Implementation Action Plan. The team also designed an Implementation plan to serve as a guiding framework for developing and testing the assessment methodology in an ex-post and ex-ante setting. Government officials were also trained in collecting the required data and conducting the analysis.

Our Core Solutions

Governments, international donors, and the private sector face many important questions on the expected outputs and impact before, during and after the implementation of their projects. Applying our analysis and research knowledge, we help our clients maximise efficiency and improve their development objectives. Through the lessons learnt and the feedback mechanisms we implement in our monitoring, evaluation, and learning (MEL) processes, we support institutional strengthening and the re-alignment of resources to ensure the sustainability and maximum impact of projects, helping our clients make well-informed strategic decisions.

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