Indonesia Proposes Panel to Evaluate Biodiesel Import Duty Dispute to EU at WTO

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Biodiesel. Photo by: palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – The Indonesian government has reintroduced its proposal to establish a second evaluation panel for the DS618 dispute within the regular Dispute Settlement Body (DSB) of the World Trade Organization (WTO) on Monday (27/11). This implies that the panel would be automatically established unless rejected by the European Union.

Nugraheni Prasetya Hastuti, Head of the Trade Advocacy Bureau, emphasized that the proposal remains consistent with the government’s commitment to safeguard and advocate for palm oil biodiesel access to the European Union. The discrimination against palm oil, attributed to subsidies that the European Union authorities refuse, is deemed inconsistent with international law.

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On 11 August 2023, Indonesia formally initiated a consultation with the European Union at the WTO. The expectation is that the panel will promptly be established, leading to a dispute trial in the first semester of 2024.

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As in the official statement to Palmoilmagazine.com, Thursday (30/11/2023), the main claim from Indonesia covered fund assumption issue from Palm Oil Plantation Fund Management Agency (PFMA) which European Commission consider that the fund was the subsidy. European Commission assumed that the fund was the support from the Government of Indonesia to produce crude palm oil (CPO). European Commission unreasonably calculated the material loss threats and was not the same with the agreement on Subsidies and Countervailing Measures/SCM Agreement).

On 6 December 2018, European Commission initiated to get anti-subsidy investigation on palm oil biodiesel from Indonesia. this was from the petition that European Biodiesel Board (EBB) proposed that was represented by law firm – Fidal on 19 October 2018.

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European Union Commission did investigation on anti-subsidy to palm oil biodiesel imports from Indonesia by taking samples from five producer/exporter companies. European Union did investigation on the same issue in Argentina that started since on 31 January 2018.

The products covered fatty-acid mono-alkyl esters and/or paraffinic gas oils that was produced from the synthesis and/or hydro-treatment that derived from non-fossil which is famously known as biodiesel in pure substance or mixed, which derived from Indonesia. The compensation import duty would be about 8 – 18 percent since 29 November 2019. (T2)

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