Indonesia has officially requested dispute consultations with the European Union (EU) through the World Trade Organization (WTO). The dispute revolves around the EU’s imposition of duties on biodiesel imports from Indonesia, a major producer of palm oil.
The EU is the third-largest market for Indonesia’s palm oil products and a significant buyer of its biodiesel. However, since 2019, the EU has imposed countervailing duties ranging from 8 percent to 18 percent on Indonesian biodiesel. Indonesia argues that these duties and the related investigation violate WTO provisions.
The request for consultations was shared with WTO members on August 15. Djatmiko Bris Witjaksono, the director general of international trade cooperation at Indonesia’s trade ministry, stated that the imposition of import duties has severely damaged the Indonesian industry, especially during the global economic recovery from the COVID-19 pandemic.
Countervailing duties are implemented by the WTO to counterbalance the adverse effects of subsidies. As a result of the duties, Indonesia’s biodiesel exports fell by 28 percent in 2019 compared to the previous year.
In 2022, Indonesia shipped a total of 435,827 tons of biodiesel, with approximately 22.47 percent of that being sent to the EU.
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