Indonesia calls on EU to enforce WTO ruling on palm oil dispute

Indonesia has called on the European Union (EU) to immediately implement the World Trade Organization (WTO) Dispute Settlement Panel’s ruling on palm oil, Antara News reports.

In an official statement released on Wednesday, Trade Minister Budi Santoso said Tuesday, February 24, marked the end of the 12-month reasonable period given to the EU to adjust policies and regulations found incompatible with WTO provisions.

He said the Indonesian government will continue to monitor and evaluate EU policy adjustments, particularly those related to indirect land-use change policies.

“We urge the EU to immediately implement the WTO panel’s decision to restore access of Indonesian palm oil products to the EU market as soon as possible,” Santoso said.

Upon completion of the transition period, the government will conduct a comprehensive assessment covering regulatory aspects, methodology, and trade impact to ensure that the EU has complied with the WTO decision by eliminating discriminatory treatment of Indonesian palm oil products.

The minister recalled that the WTO decision in dispute DS593 found that EU policies discriminated against Indonesian palm oil-based biofuel products compared to similar products from the EU and other countries. This decision provides legal clarity regarding the EU’s measures’ violation of the WTO’s non-discrimination principle.

Santoso noted that the government has prepared various scenarios in the event the EU fails to demonstrate full compliance by the end of the reasonable period, including measures to ensure legal and technical preparedness.

Tags: Indonesia, EU, palm oil