In a verdict handed down on Thursday 25 January, the WTO found in favour of Indonesia in the appeal lodged by Jakarta against the EU's anti-dumping duties on Indonesian biodiesel.
The panel of experts from the WTO's Dispute Settlement Body (DSB) responsible for arbitrating in the Indonesian complaint (DS 480) ruled the EU's measures "incompatible" with the 1994 anti-dumping agreement, judging that the EU did not determine the amount corresponding to the advantages for the Indonesian sector "on the basis of a reasonable method". The two parties have 60 days to appeal the verdict.
The EU has been imposing anti-dumping duties on imports of biodiesel from Argentina and Indonesia since 2013. These taxes are aimed at re-establishing a situation of competition in the face of dumping from a system of differential export tax set up by Argentina and Indonesia. This system is based on the application of a higher tax for raw materials (Argentine soja and Indonesian palm oil) than for processed products based on these raw materials.
Argentina and Indonesia both opened procedures at the WTO against the EU's measures – in March and June 2014 respectively. As part of the Argentine complaint, the WTO condemned the EU's measures in a verdict handed down in March 2016, which was confirmed by the Appellate Body in October 2016.
Following this verdict, the EU drastically lowered its duties on Argentine biodiesel in September 2017, from around 25% to between 4.5% and 8.1% according to companies.
In the Indonesian biodiesel case, these duties are still on average 18.9%. The EU, which can appeal the decision of the WTO, could be obliged, in the medium-term, to reduce these duties strongly.
On 22 January, the EU Council of Ministers approved the withdrawal of the EU Council's request for appeal before the European Court of Justice (CJEU) as part of the appeal of the Argentine and Indonesian biodiesel industries against the EU's anti-dumping measures on imports of biodiesel from Argentina and Indonesia, as the CJEU also condemned these measures. (Original version in French by Emmanuel Hagry)