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View all search resultsEU appeals ‘into the void’ WTO ruling on RI biodiesel exports
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The back garden of the World Trade Organization headquarters in Geneva, Switzerland, is seen empty on Sept. 15 next to Lake Geneva ahead of the WTO Public Forum. (JP/Deni Ghifari)
T
he European Union plans to appeal a World Trade Organization ruling against Brussels’ import duties imposed on biodiesel from Indonesia, meaning the case is set to remain in limbo at the WTO’s paralyzed Appellate Body.
In a press release on Friday, the WTO noted that Jakarta “expressed regret” about the EU’s decision to appeal, while Brussels “recalled that it had invited Indonesia” to join an alternative arbitration established to address the absence of the Appellate Body.
The EU has been charging countervailing duties of 8 to 18 percent on biodiesel imported from Indonesia since 2019, thereby protecting European companies that mainly produce rapeseed-based biodiesel, which is more expensive than Indonesia’s palm oil-based fuel.
The tariffs were imposed after an investigation by the European Commission concluded that the archipelago’s producers profited from grants, tax benefits and access to raw materials below market prices.
Trade Ministry international trade negotiations director general Djatmiko Bris Witjaksono told The Jakarta Post on Sunday that the government “is weighing the next steps to respond to the EU's decision”.
“Indonesia respects the EU’s right [to an appeal at the WTO’s Appellate Body], even though there are other usable options, [...] such as through ad hoc arbitration,” Djatmiko said.
In 2018, before the duties came into force, the EU was Indonesia’s second-largest palm oil export destination, behind only India. It is now the third-largest importer of total Indonesian palm oil products, including biodiesel.
