Brussels, 01/09/2015 (Agence Europe) - On Monday 31 August, the WTO's dispute settlement body (DSB) agreed to set up a special panel to settle Indonesia's complaint against the EU's anti-dumping duties targeting Indonesian exports of biodiesel (DS 480).
As part of its complaint, Indonesia asked the DSB to assess the cost adjustment methodology procedures and practices used in the EU's anti-dumping rules. It also asked the DSB to assess the anti-dumping duties set up by the EU against biodiesel imports from Indonesia. Jakarta considers that the EU's measures are in breach of WTO rules on trade in goods.
In May 2013, the EU provisionally imposed anti-dumping duties on its biodiesel imports from Argentina and Indonesia for a period of five years. These duties then became definitive in November 2013. The EU's aim was to restore a situation of competition in the face of the dumping that had emerged, according to a Commission inquiry, from a differentiated tax system set up by these two countries to support their biodiesel. This system is based on the application of a higher duty for raw materials (Argentine soya and Indonesian palm oil) than for processed products based on these raw materials.
The WTO consultations between Indonesia and the EU on this issue did not enable the dispute to be resolved in July 2014. On Monday, under WTO rules, the EU - which at the end of July had rejected Indonesia's first request for a WTO panel to be set up (see EUROPE 11364) - was not able to oppose Indonesia's second request for this panel.
Argentina, for its part, complained to the WTO against the EU's measures in March 2014 (DS 473). In April 2014, Argentina obtained the establishment of a special panel to rule on this affair (see EUROPE 11068). The panel's verdict is expected for the end of 2015. (Emmanuel Hagry)