ADILLATA MAULA

JEMBER UNIVERSITY
INDONESIAN
Agreement as the Basis for the Legal Aspects of Regional
Economic Integration and Cooperation
Regional economic integration is an agreement between states in a
geographic area to reduce and eventually eliminate tariffs and non-tariff
barriers to the flow of goods, services and factors of production between
one country and another. The existence of regional economic integration
has several advantages as well as disadvantages factor for each policy
created will always be the name of the pros and cons. Where the pros and
cons of this are not unusual happens not just economics alone but also
frequent legal field the pros and cons it is because a lot of thought as well
as the many streams that developed in the world. Regional Economic
Integration has several levels including:

1. Free Trade
Barriers to trade in goods and services between countries - member
states abolished. In trade with non-member countries, member states are
allowed to form their own rules.
2. Customs Union
Barriers to trade in goods and services between countries - member
states abolished. In trade with non-member countries, member states
should use the rules that have been agreed and implementation is
overseen by administrative control.
3. Common Market
Goods, services, factors of production (labor and capital) to move freely
between the member. No restrictions on immigration, emigration, or the
cross-border flow of capital between countries members. necessary to
realize this relationship of cooperation on the fiscal, monetary, and
employment.

4. Economic Union
Not only involves the free flow of products and factors of production
between countries-elected and adoption of a common external trade
policy, but also requires a common currency, tax harmonisasitarif
members, and monetary and fiscal policy together. This relationship
requires the sacrifice of national sovereignty.
5. The Parties
The need for a bureaucratic system that is accountable to the state economic union member countries triggered the establishment of a
central political tool that coordinates economic policy, social, and foreign
policies of the countries - members.
In the world economy this level is used to hold a regional economic
integration in which the world economy according to WTO Regional
Economic Integration is highly recommended that for each state is
required to ratify because by doing so it will create many benefits for his
state or the state around just like us can do a cooperation between
neighboring countries that do not need the entire world for the promotion
of a country that is through cooperation between neighboring countries so
that the creation of peace or well-being is also an excellent field of
economic and political field. As is the case in the field of the economy of
these countries are able to invest across countries, and also the creation
of free trade between countries in accordance with the agreement made
between countries. Being in political terms it is between countries in
carrying out their duties for the creation of prosperity for the people can
be realized as between states have agreed not to make war or battle
between countries, in addition to that of a country can easily find out how
the state of its citizens in other countries with Embassy in the country so
as to create a political harmony between countries.
Although the system of regional economic integration seemed very helpful
in the trade, but many people who reject this system because this system
only benefits the weak and less in favor of the weaker groups both
member states but also non-members. markets always want the goods at
a cheaper price if the quality is the same. While the production cost can

be reduced only by the effectiveness of that to happen it takes no small

cost. Only countries that are ready who can take advantage of this
relationship. Even so non-members with industry competitiveness are less
competent difficulty developing because hindered tariff and non-tariff
barriers which are held by a member state while member states there are
no obstacles making it difficult to compete in the market of countries members of regional economic integration.
So in this case is needed laws to protect countries that have weak
strength among other countries. This causes the indispensable presence
of Legal Aspects in terms of regional economic integration and
cooperation. Due to the absence of a law governing or applicable, the
weak state could obtain his rights if he felt so oppressed for the treatment
of a strong state. As well as weak states can also fight for their rights
through legal channels either litigation or non-litigation or also using an
international arbitration court. In the aspect of the law should also
regulate how the rights and obligations of a strong state in which he was
given the freedom to act but with due regard to the limits its authority to
be set in a legislation as a manifestation of the legal aspects protecting
regional economic integration and cooperation among a country where
the rule comes from an agreement between the two parties who are
known as international agreements. The agreement is only binding for the
parties to an agreement and must be obeyed by both parties like the
parties comply with international regulations.