WTO Rules Favor Indonesia in EU Biodiesel Duty Dispute

The World Trade Organization (WTO) has ruled in favor of Indonesia in its dispute with the European Union over countervailing duties on Indonesian biodiesel imports, recommending the EU bring its measures into compliance with WTO rules. The EU has imposed duties ranging from 8% to 18% since 2019, alleging Indonesian producers benefit from subsidies, but the WTO found Indonesia's export duty and levy on palm oil are not subsidies and that the EU failed to prove material harm to European producers. Indonesia's trade and economic ministers have urged the EU to immediately lift these tariffs, emphasizing the importance of the European market for Indonesia's biodiesel exports, which are closely linked to its palm oil industry. The ruling is seen as a significant victory for Indonesia's key export commodity and could help ensure fair market access. However, the WTO's top appeals court remains non-operational due to blocked judge appointments, meaning the ruling can be appealed but no final decision can currently be reached. Indonesia is awaiting the EU's response and is also exploring new trade opportunities, such as joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).