At a meeting of the World Trade Organization’s (WTO) dispute settlement body on Wednesday 28 April, the EU refused Malaysia’s request to establish a panel for the dispute between them, according to an official in Geneva. This would constitute the second step in the resolution of the dispute.
Malaysia had requested consultations with the EU in January regarding the EU’s restrictions on the use of palm oil for biofuels (see EUROPE 12639/19). This was in response to the EU’s decision not to include palm oil-based biofuel in renewable energy targets.
According to the same source, Malaysia noted during the meeting that consultations with the EU had “failed to resolve the differences between the two sides”.
The EU has indicated that it is not in a position to accept the Malaysian request. It considers that the measures it has put in place concerning biofuels are perfectly legitimate. It also said it was open to in-depth discussions with the Malayan side, the Geneva source said.
The EU has the right to object to the opening of a panel for this first request. However, should Malaysia renew its request at the next meeting of the Dispute Settlement Body, it no longer will have this right. (Original version in French by Léa Marchal)