GENEVA (Reuters): A World Trade Organization panel backed Indonesia on several key claims in its complaint over countervailing duties imposed by the European Union on biodiesel imports originating in the country, a copy of the ruling showed on Friday.
Indonesia brought the dispute to the WTO in 2023, alleging the EU's imposition of duties on imports of biodiesel from the Southeast Asian nation broke the body's rules.
"We recommend that the European Union bring its measures into conformity with its obligations under the SCM Agreement," the panel said in its conclusion, referring to a WTO agreement on subsidies and countervailing measures.
The EU is Indonesia's third-largest destination for palm oil products and is an important market for its biodiesel, a product made from palm oil. Indonesia is the world's biggest palm oil producer.
Indonesia appreciates the ruling and is preparing for its implementation, Chief Economic Minister Airlangga Hartarto told Reuters on Saturday, without providing further details.
The finding can be appealed, but no final ruling is possible since the WTO's top appeals court is no longer operational.
The WTO Appellate Body ceased functioning in 2019 due to repeated blockages of judge appointments by the first administration of U.S. President Donald Trump.
(Reporting by Riham Alkousaa and Emma Farge in Geneva; Additional reporting by Ananda Teresia in Jakarta; Editing by Thomas Seythal) - Reuters
