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Indonesia admits defeat in WTO nickel-export dispute
The government has admitted that the World Trade Organization ruling on its nickel export ban was in favor of the European Union but vows to appeal in a process that could buy the country years of time to build up domestic processing industries.
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Energy and Mineral Resources Minister Arifin Tasrif speaks during the Business 20 Summit in Nusa Dua, Bali, on Nov. 13. (B20 Secretariat/-)
The government has admitted that the World Trade Organization ruling on its nickel-export ban was in favor of the European Union.
In a meeting with House of Representatives Commission VII, which oversees energy and technology policies, the Energy and Mineral Resources Ministry announced that the WTO panel had rejected Indonesia's justification for the policy.
In 2019, the EU launched consultations with Indonesia under the WTO framework about the latter's restrictions on the export of several raw materials, including nickel, that are necessary for the production of stainless steel.
Registered as dispute DS592, Brussels believed Indonesia had violated Article XI:1 of the 1994 General Agreement on Tariffs and Trade (GATT), which states that WTO members must grant as much access as possible to international trade.
Indonesia sought to justify its policy on the basis of exemptions from that principle stipulated in articles XI:2 (a) and XX (d) of the GATT.
“The government maintains that the panel’s decision does not yet possess permanent legal standing, so there is still a chance to appeal,” Energy and Mineral Resources Minister Arifin Tasrif said on Monday.
The minister continued by explaining that Indonesia was not obliged to change or retract its regulation as long as an appeal process was still ongoing through the WTO's dispute settlement body (DSB).
