Indonesia asks WTO to suspend EU concessions over palm oil

Trade Minister Budi Santoso said in Jakarta on Saturday that the measure was taken after the EU failed to meet deadlines to adjust its policies or fully comply with the WTO panel’s rulings and recommendations in the palm oil dispute (DS593).

“The suspension of concessions will focus on the goods sector, but is open to other sectors. We will ensure that the amount of damage is calculated carefully and that the case is handled effectively while simultaneously maintaining bilateral relations with the EU,” Santoso said.

He said the suspension of concessions was necessary and consistent with Article 22.2 of the WTO dispute settlement rules, following the EU’s failure to revise its palm oil policies in line with the panel’s rulings and recommendations.

Furthermore, the EU was unable to provide equitable compensation to Indonesia for its failure to fulfill its WTO obligations.

“Indonesia can apply for concession suspension authority to the DSB to safeguard Indonesia’s rights in the future should the EU fail to comply with the WTO Panel ruling,” Santoso said.

He added that the Indonesian government’s steps have been coordinated across government agencies and received support from businesses, including the Indonesian Palm Oil Producers Association (GAPKI) and the Indonesian Biofuel Producers Association (APROBI).

According to him, Indonesian businesses’ calculated annual losses are enormous due to the loss of potential export value.

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Translator: Maria Cicilia Galuh Prayudhia, Cindy Frishanti Oct