Retailing Services Liberalization under ASEAN Framework Agreement on Services:Case Studies of Indonesia and Vietnam

Abstract

The objective of this article is to study whether the domestic regulations of Indonesia and Vietnam affecting the retail suppliers is consistent with the obligations undertaken under the Schedule of Specific Commitments of AFAS. Regarding to this, the researcher mainly studies on the fundamental principles on liberalization of trade in services (GATS), adopted to liberalization in ASEAN under AFAS, the obligations and the domestic regulations of the two member states; Indonesia and Vietnam.The study shows that the domestic regulations affecting the retail suppliers in Indonesia are consistent with its obligations under the Schedule of Specific Commitments. On the other hand, the case of Vietnam, the enforcement of the domestic regulations are inconsistent with its own obligations under the Schedule of Specific Commitments. As a result, these issues not only hinder the establishment of retail services but also infringe the obligations which are considered as a discriminatory according to national treatment principles as well as restrictions on the provision of benefits under the Schedule. The existence of the domestic regulations that are inconsistent with the member states’ obligations will cause the nullification of the endeavor of trade in services liberalization in the region.