The World Trade Organization's (WTO) dispute settlement body has greenlit the formation of a panel to examine the countervailing duties imposed by the European Union (EU) on biodiesel imports from Indonesia, according to an announcement made late on Monday. This development follows Indonesia's initiation of WTO dispute consultations with the EU after the bloc imposed duties on Indonesian biodiesel imports in August.
The attempt at consultation between Indonesia and the EU did not yield an agreement, prompting the world's largest palm oil producer to escalate the matter by formally requesting the establishment of a dispute settlement body, a move initially resisted by the EU.
Budi Santoso, a senior official at the Indonesian trade ministry, emphasized the strategic importance of appealing to the WTO, stating that it is crucial to maintaining market access for Indonesian biodiesel products in the EU. The current countervailing duties, ranging from 8% to 18%, were imposed for a five-year period starting December 10, 2019, and are slated to continue until December 10, 2024.
The Indonesian biofuel producers association expressed concerns over the impact of these duties on exporters and expressed hope that the WTO panel would promptly commence proceedings, as conveyed by the group's chairperson, Paulus Tjakrawan, in statements provided to Reuters.
Late on Monday, the WTO revealed that several nations, including the United States, the United Kingdom, Norway, the Russian Federation, Thailand, Singapore, Japan, Canada, China, Argentina, and Türkiye, have reserved their third-party rights to participate in the panel proceedings.
