- Indonesia requests WTO dispute consultations with the EU regarding the bloc’s imposition of duties on biodiesel imports.
- The duties burden Indonesian biodiesel exporters.
The World Trade Organization’s (WTO) dispute settlement body has agreed to establish a panel to review countervailing duties imposed by the European Union (EU) on biodiesel imports from Indonesia. Indonesia has requested WTO dispute consultations with the EU regarding the bloc’s imposition of duties on imports of biodiesel from the Southeast Asia nation in August.
However, after the consultation failed to reach an agreement last month, the world’s biggest palm oil producer requested that the WTO establish a dispute settlement body, which the EU previously did not accept. Budi Santoso, senior official at the Indonesian trade ministry, said, “Efforts to appeal this case to the WTO are very strategic to maintain market access for Indonesian biodiesel products in the EU market, which is currently subject to countervailing duties of 8% to 18%.” Budi added that the countervailing duties were for five years, from December 10, 2019, up to December 10, 2024.
The group chairperson, Paulus Tjakrawan, said the Indonesian Biofuel Producers Association said the duties burden Indonesian biodiesel exporters and hoped the WTO panel could immediately start the proceedings. Furthermore, the WTO stated that the United States, the United Kingdom, Norway, the Russian Federation, Thailand, Singapore, Japan, Canada, China, Argentina and Türkiye had reserved their third-party rights to participate in the panel proceedings.