Trucks are seen near a palm oil plantation at a village located near in East Kalimantan province, Indonesia, March 8 2023. REUTERS
JAKARTA, March 7 (Reuters) – Indonesia’s trade ministry said on Saturday that the government will file a suspension-of-concessions request against the European Union at the World Trade Organization’s (WTO’s) dispute settlement body, citing the block’s failure to meet a WTO ruling in a palm oil case.
Here are the details:
- “This step is taken after the EU could not meet the deadline to adjust its policy or was not fully compliant with the ruling and recommendation of the palm oil dispute settlement body,” Trade Minister Budi Santoso said in a statement.
- The suspension of concession will be focused on trade in goods, Budi said, adding that the government has not ruled out concession suspension in other sectors.
- “We will ensure that the losses are thoroughly calculated and the cases are handled effectively, while maintaining bilateral relations with the EU,” Budi said.
- In 2025, a WTO panel found largely in favour of the EU in a case brought by Indonesia against the bloc’s restrictions on palm oil-based biofuel.
- The panel ruled that palm oil-based diesel would not be considered a biofuel and its use in transport fuel would effectively be phased out between 2023 and 2030. However, the panel did find fault in the way the EU had prepared, published and administered its measures.
Reporting by Bernadette Christina; Editing by Himani Sarkar
