A World Trade Organization (WTO) panel has ruled in favor of Indonesia on several key claims in its challenge against European Union duties on biodiesel imports, according to a copy of the decision released Friday.
Indonesia launched the case in 2023, arguing that the EU’s countervailing duties on biodiesel — largely produced from palm oil — violated WTO rules, News.Az reports, citing Reuters.
The panel concluded that the EU measures were inconsistent with the WTO’s agreement on subsidies and countervailing measures, recommending Brussels bring its policies “into conformity with its obligations.”
The EU is Indonesia’s third-largest market for palm oil products and a critical destination for biodiesel exports. Indonesia, the world’s biggest palm oil producer, welcomed the ruling. “We appreciate the decision and are preparing for its implementation,” said Chief Economic Minister Airlangga Hartarto.
The decision can technically be appealed. However, the WTO’s Appellate Body has been non-functional since 2019, when the U.S. under then-President Donald Trump blocked new judge appointments — leaving trade disputes unresolved at the final stage.
