WTO agrees dispute panel to review EU import duties on Indonesian biodiesel

JAKARTA (Reuters): The World Trade Organization’s (WTO) dispute settlement body has agreed to establish a panel to review countervailing duties imposed by the European Union (EU) on imports of biodiesel from Indonesia, the global trade body said late on Monday.

Indonesia has requested WTO dispute consultations with the EU regarding the bloc’s imposition of duties on imports of biodiesel from the Southeast Asia nation in August.

However after the consultation failed to reach an agreement, last month the world’s biggest palm oil producer requested WTO to establish a dispute settlement body, which the EU previously did not accept.

“Efforts to appeal this case to the WTO are very strategic to maintain market access for Indonesian biodiesel products in the EU market which is currently subject to countervailing duties of 8% to 18%,” said Budi Santoso, senior official at the Indonesian trade ministry on Tuesday.

The countervailing duties were imposed for five years December 10, 2019, up to December 10, 2024, Budi added.

Indonesian Biofuel Producers Association said the duties have been burdening Indonesian biodiesel exporters and hoped that the WTO panel could immediately start the proceedings, the group chairperson Paulus Tjakrawan told Reuters.

The WTO said late on Monday the United States, the United Kingdom, Norway, the Russian Federation, Thailand, Singapore, Japan, Canada, China, Argentina, and Türkiye had reserved their third-party rights to participate in the panel proceedings.