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Indonesia's Trade Ministry on Thursday urged the European Union to adopt a World Trade Organization panel ruling that called for the elimination of countervailing duties on imports of Indonesian biodiesel, expressing regret over the bloc's decision to appeal the ruling.
The European Union announced last week that it would appeal the WTO panel's ruling, which had upheld Jakarta's claim that duties imposed by the EU – the third-largest destination for Indonesian palm oil products – violated the trade body's rules.
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Trade Minister Budi Santoso said in a statement: "The EU's decision to file an appeal against the DS618 dispute settlement panel ruling is an irrelevant move," noting that the WTO's Appellate Body has been non-functional since 2019.
"This move by the EU can be seen as an attempt to buy time," he added.
The EU has imposed the duties, ranging from 8% to 18%, since 2019, arguing that biodiesel producers in the Southeast Asian nation had benefited from grants, tax incentives and access to raw materials at below-market prices.
The case adds to a series of disputes over biodiesel tariffs and the link between palm oil and deforestation, coming as the EU and Indonesia concluded negotiations on a free trade agreement last month.
Source: Reuters