Volume 9 Issue 3 ( September 2022 )

Pages_619-628

Implementation of Standards in International Trade: Benefit or Barrier? A Case Study from Indonesia

Danar Agus Susanto

[ABSTRACT ]

The paper opted for an exploratory descriptive study using the open-ended approach of grounded theory, including 37 direct depth interviews with representatives of export companies. The data was complemented by document analysis, including a description of its benefits and standard implementation, and standards required by the country of export. The purpose of this paper is to explain the relationship between standard practice and international trade. It is used to determine whether the implementation of these standards has benefits or barriers to international trade. International standards have a positive impact on international harmonization, whereas the implementation of national standards has a positive effect on exporters via additional competitiveness. However, the implementation of national standards can also have a negative impact when as a technical regulation by the importing country. The implementation of private standards, meanwhile, has a positive impact on product quality, corporate image, prices, and profits and a negative impact on the ability to obtain product information, market access, and overlap with applicable national and international standards. This study is only conducted on companies that export from Indonesia. This paper provides information and knowledge on how standards provide benefits and barriers to international trade. This paper fulfills the need for information to exporting countries and companies about the implementation of standards before carrying out export activities, so as not to become a trade barrier. This paper fulfills an identified need to study how standards play a role in international trade.

Keywords: Standard, implementation of standards, international trade, Indonesia.

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