Indonesia challenges EU duties on fatty acid imports at WTO

Trade
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Ngozi Okonjo-Iweala Director-General of the World Trade Organization | Official Website

Indonesia has submitted a second request for the establishment of a panel to review the European Union's anti-dumping duties on fatty acids imported from Indonesia. The EU initially rejected Indonesia's first request at a Dispute Settlement Body (DSB) meeting on November 25. Indonesia emphasized its right to protect national interests and urged the EU to align its measures with World Trade Organization (WTO) provisions.

The European Union expressed regret over Indonesia's decision, maintaining that its measures were justified and expressing confidence in prevailing in the dispute. The EU also indicated readiness to preserve appeal rights through the Multi-party Interim Appeal Arrangement (MPIA), a measure to ensure appeal review availability amid an inactive Appellate Body.

The DSB approved the panel's establishment, with Brazil, Japan, Canada, Australia, China, the United States, the United Kingdom, Türkiye, and Russia reserving third-party rights to participate.

Colombia introduced a proposal on behalf of 130 members to start filling vacancies on the Appellate Body for the 82nd time. This reflects widespread interest in maintaining WTO dispute settlement functionality. However, the United States opposed this proposal again, citing concerns about unchecked overreach by the Appellate Body and subsequent panels.

Twenty-four members commented on this issue. Many stressed the importance of a fully-functioning two-tiered dispute settlement system and regretted unmet mandates from past Ministerial Conferences. They acknowledged progress in reform discussions and appreciated former Ambassador Usha Dwarka-Canabady's facilitation efforts over six months. There was support for initiating consultations early next year to advance reform work further.

Colombia reiterated disappointment over delayed selection processes for Appellate Body vacancies and emphasized ongoing reform talks should not hinder its full operation.

DSB Chair Ambassador Saqer Abdullah Almoqbel praised contributions towards establishing a well-functioning dispute settlement system accessible to all members.

Australia reported on implementing panel rulings in DS603 concerning anti-dumping measures against Chinese products. Australia revoked measures on stainless steel sinks from China as part of compliance efforts.

China welcomed Australia's actions as evidence of WTO mechanisms resolving trade disputes amicably while supporting multilateral trading systems.

The United States provided status reports on various cases involving anti-dumping measures affecting Japan and Korea among others. The European Union reported on biotech product approval measures in DS291, while Indonesia updated status reports related to horticultural imports in DS477 and DS478.

Malaysia discussed timelines with the EU for implementing rulings in DS600 regarding palm oil biofuels. Both parties are working towards resolving disputes per panel conclusions.

The next regular DSB meeting is scheduled for January 27, 2025.