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Indonesia Strengthens the Trade of Palm Oil Derivative Product, Fatty Alcohol to European Union



Indonesia Strengthens the Trade of Palm Oil Derivative Product, Fatty Alcohol to European Union

Info SAWIT, JAKARTA –Though European Union has decided the change of Anti – Dumping Import Duty (ADID) for palm oil derivative product, fatty alcohol in 2012, Indonesia still found the miss-match with the Regulation in Anti-Dumping Agreement(ADA) of World Trade Organization(WTO)implemented to the exporters and producers of Indonesia.

On 20 July 2012, Indonesia decided to claim to Dispute Settlement Body(DSB) WTO within the issue, to object the interpretation of European Union.  The issues were the status of Indonesian exporters in the form of Single Economic Entity(SEE), the objection on the adjustment that European Union did, the incompatibility when implementing ADA in WTO in relationship with economic crisis in Europe, and the issue in material as the other factor out of the dumping which made loss for the domestic industries in fatty alcohol in European Union. Besides the European Union Authority when verifying (on the spot investigation) did not publish the result of the check and it was not used by European Union to determine ADID.

 On 23 September 2016, the Panel of DSB WTO sentenced that Indonesia won the claim on the verification result. The decision was re-confirmed by Panel AB WTO. When deciding the ADID to Indonesia, European Union did not use the verification result that had been done. As a matter of fact, in the process of anti-dumping investigation, the verification result should be used as the basic thing to determine margin dumping and the injury.

The decision of Panel DSB WTO that had been re- confirmed by Panel AB WTO should be obeyed by the Investigation Authority, namely after the decision of AB WTO was adopted on 29 September 2017. This is jurisprudence, as a reference for the next same case.

Indonesia and other members of WTO could point to the decision of AB WTO, knowing that the claimed got and won by the panel is from the basic investigation in Trade Remedies Practices(dumping, subsidy, andsafeguard). This is written in Article 6.7 ADA WTO.

ADA WTO also obliged the Investigation Authority to reveal the “result” of the on the spot verification, both in the form of separated report, and as part of important verification in a document, Essential Facts, just the same in Article 6.9 ADA WTO.

“Indonesia is happy knowing the decision of AB WTO that confirms the decision of DSB WTO on what Indonesia claimed. The government certainly would follow up the issue by approaching European Union and strengthen the cooperation, namely palm oil and its derivative, such as, fatty alcohol,” General Director of Foreign Trade, Ministry of Trade, OkeNurwan, said in the official statement to InfoSAWIT, Thursday, (14/12/2017).

He also mentioned, the decision would urge the Investigation Authority, namely, European Union Investigation Authority to be more discipline to the result that has been got from the verification so it would be the same with the regulation in ADA WTO, and be fair in every investigation.

Meanwhile, Director of Trade Custody, Ministry of Trade, Pradnyawatialso told, learning from the case, between Indonesia and European Union, the Investigation Authority should be committed to the result from the investigation.

“Indonesia would do the same based on the decision of the panel to be more discipline in the investigation process about dumping, subsidy, and safeguard by noticing the verification result,” Pradnyawati said.(T2)


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