Geneva: A World Trade Organization (WTO) panel has upheld several of Indonesia’s claims in its challenge against countervailing duties imposed by the European Union on biodiesel imports from the country, according to a ruling released Friday, reports Reuters.
Indonesia filed the case in 2023, arguing that the EU’s duties on palm oil-based biodiesel violated WTO rules. In its conclusion, the panel recommended that the EU bring its measures into line with obligations under the WTO’s Agreement on Subsidies and Countervailing Measures (SCM).
The EU is Indonesia’s third-largest market for palm oil products and a key buyer of its biodiesel. Indonesia is the world’s top palm oil producer and has long argued that EU trade restrictions unfairly target its industry.
Indonesia welcomed the panel’s findings. “We appreciate the ruling and are preparing for its implementation,” Coordinating Economic Minister Airlangga Hartarto told Reuters on Saturday, without giving further details.
While the EU has the option to appeal, no final ruling can currently be issued because the WTO’s top appeals body has been inactive since 2019, following a U.S. blockade on new judge appointments under former President Donald Trump.
