Indonesia regrets EU's decision to appeal WTO biodiesel ruling

The Indonesian Trade Ministry on Thursday called on the European Union (EU) to accept the World Trade Organization panel's ruling on removing countervailing duty on Indonesian imports of biodiesel and regretted that the bloc had appealed the WTO decision.

Last week, the European Union announced that it would appeal the WTO panel's ruling, which supported Jakarta's claim, that the duties levied on EU palm oil products as the EU is the third largest destination of Indonesian palm oils products violated the rules of the trade body.

The EU's decision not to appeal the Dispute Panel DS618 ruling is irrelevant, Trade Minister Budi Santitoso stated in a press release. He pointed out that WTO Appellate Body ceased operating in 2019.

He said that "this EU move could be viewed as an attempt at buying time."

Since 2019, the EU has placed duties ranging from 8-18% on biodiesel produced in Southeast Asia. The EU claims that the producers of the fuel benefited from subsidies, tax breaks and the access to raw materials at prices below the market.

This case is the latest in a series of disputes involving biodiesel and palm oil and their link to deforestation. The EU and Indonesia have just finalised negotiations for a free-trade agreement.

(source: Reuters)