Indonesia launches official complaint against EU at WTO over biodiesel duties

June 11, 2014 |

In Switzerland, Indonesia has officially launched a complaint against the EU at the WTO over anti-dumping tariffs Europe has lodged against Indonesian biodiesel imports since May last year. The WTO established a dispute panel over similar changes made by Argentina already in April.

Last month, the Indonesia government said it would file an official complaint with the WTO against the European Union and its anti-dumping tariffs on biodiesel imports, following Argentina seeking and getting approval for the opening of a dispute settlement panel. Several biodiesel producers have also filed complaints directly with the European Court of Justice.In April, the WTO agreed to set up a dispute panel between Argentina and the European Union regarding the latter’s anti-dumping tariffs levied on Argentine biodiesel imports. Argentina argued that the anti-dumping tariffs have effectively closed off the European market to its biodiesel. The European and Argentine representatives to the WTO in Geneva are reportedly in contact in an attempt to resolve the trade dispute without the need for the panel or further interventions.

A trigger? Last November, the Spanish government published the biodiesel supply quotas for the next two years, quotas that don’t included non-European producers despite the expectation that they must import according to WTO rules. Of the 42 installations that received quotas, 27 are Spanish, five are Italian, five are German, two are British, and one each from Lithuanian, the Netherlands and Portugal. There are seven Spanish producers who were not given quotas as well as six Argentine, four Indonesian, and two Malaysian.

Demand is rising. The country’s biofuel producers association APROBI says domestic demand may triple this year to more than 3 billion liters, up from just over a billion liters last year. Biodiesel exports are expected to reach 2.2 billion liters, up 20% on the year despite its trade spat with Europe due to increased demand from the US, South Korea, China and Australia.

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Category: Policy

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