Indonesia hits European Union with WTO lawsuit over palm oil

(EurActiv, 16 Dec 2019) Indonesia on Sunday (15 December) said it has filed a World Trade Organisation lawsuit against the European Union over plans to phase out palm oil-based biofuel for cars, the trade ministry said.

The action could escalate a trade dispute between Indonesia – the world’s top palm oil producer – and the EU, which plans to end its use of biofuels by 2030, citing concerns over widespread deforestation caused by the sector.

The EU earlier imposed duties on imports of subsidised biodiesel from Indonesia saying it was needed to level the playing field for its producers.

In response to what it called “discriminative” policies against its key palm oil exports, Indonesia said it filed a complaint with the WTO last week.

“Indonesia officially sent a request for consultation on December 9, 2019 to the EU as the initial step for the lawsuit,” Trade Minister Agus Suparmanto said in a statement Sunday (15 December).

Neighbouring Malaysia, the world’s second-biggest palm oil producer, has also threatened WTO action against the EU.

Teresa Kok, the minister overseeing Malaysia’s palm oil sector, told AFP on Monday that she will head to Europe in March, and a challenge will not be filed until after then.

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EurActiv, 16 Dec 2019: Indonesia hits European Union with WTO lawsuit over palm oil