JAKARTA –The World Trade Organization (WTO) has not yet taken any decision regarding the lawsuit filed by Indonesia three years ago against the European Union (EU) for its trade policy which discriminates palm oil.
The trade ministry’s Trade Defense Director Natan Kambuno said on Monday, 30 January 2023, that Indonesia is still waiting for the WTO to make a legal decision. “Regarding the trade dispute between Indonesia and EU, we’re waiting for a panel of WTO to issue a report early this year or in the middle of this year,” Natan told Kontan.co.id on Monday.
Deputy Minister of Trade, Jerry Sambuaga is optimistic that Indonesia will win the lawsuit as Indonesia has the rights and clear sovereignty to fight for fair trade and equal treatment at the global market. “But it’s still in process,” Jerry said in Jakarta on Sunday, 29 January 2023.
Previously, Edy Yusuf, Assistant to Deputy in charge of plantation agribusiness development at the economic coordinating ministry, said that actually the panel report was expected to be issued by the end of last year (2022) or early this year (2023) at the latest.
The Indonesian government filed the lawsuit against the EU’s Renewable Energy Directive (RED) II and Delegated Regulation (DR) policy at the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) in 2019. The lawsuit was registered at WTO under legal case number of DS 593. But until now, there has been no legal decision taken by the international agency.
The Indonesian government has stated that the EU’s RED II and Delegated Regulation (DR) policy is a discriminatory policy as it only singles out the palm oil among other vegetable oils that is not allowed to be used as raw material for biofuel production in Europe.
Through the RED II, EU categorizes the palm oil as having high risk of deforestation. The EU will gradually limit and phase out it until 2030 as raw material for the production of biodiesel in Europe.
Natan said that Indonesia had presented all necessary defenses and arguments regarding the EU’s discriminatory policy against the palm oil. “We’ve been in intensive coordination with all stakeholders,” said Natan.
By filing the lawsuit, Indonesia has no intention of opposing the climate change policy of the EU. Indonesia, he said, has the same commitment with the EU in terms of the climate change policy as reflected in the Paris Agreement.
Indonesia hopes that EU and other countries will prioritize cooperation. The issue of environment should not be used for negative campaigns against the palm oil.
“The EU should not apply a disguised discriminatory policy that will actually hinder Indonesia’s efforts of implementing the sustainability principles in Indonesia,” he said. (*)
Source: KONTAN.CO.ID
