Malaysia submitted its second request for a panel to the World Trade Organization (WTO) Dispute Settlement Body for its dispute with the EU over biofuels on Friday 28 May.
After the EU refused to open the panel on 28 April (see EUROPE 12708/2), Kuala Lumpur reiterated its request, which, according to the procedure, the EU cannot oppose a second time. The Dispute Settlement Body therefore accepted the establishment of this panel.
Malaysia believes that the EU’s exclusion of palm oil from its renewable energy targets is inconsistent with the General Agreement on Tariffs and Trade (GATT) and the Agreement on Subsidies and Countervailing Measures.
According to a Geneva official, the EU regretted Malaysia’s decision to renew the request at a WTO meeting on 28 May. The EU still considers that the measures in place concerning biofuels are fully justified.
However, it said it was open to discussing “interim arrangements” with Malaysia, according to the same source. (Original version in French by Léa Marchal)