Home Asia Indonesia hits European Union with WTO lawsuit over

Indonesia hits European Union with WTO lawsuit over palm oil

Neighbouring Malaysia, the world's second-biggest palm oil producer, has also threatened WTO action against the

Author

Date

Category

- Advertisement -

Indonesia has filed a Trade Organization against the European Union over plans to phase out -based biofuel for cars, the trade ministry said.

The action could escalate a trade dispute between Indonesia — the world’s top palm oil producer – and the , which plans to end its use of biofuels by 2030, citing concerns over widespread deforestation caused by the sector.

The EU earlier imposed duties on imports of subsidised biodiesel from Indonesia saying was needed to level the playing field for its producers.

In response to what called “discriminative” policies against its key palm oil exports, Indonesia said filed a complaint with the WTO last week.

- Advertisement -

“Indonesia officially sent a request for consultation on December 9, 2019 to the EU as the initial step for the lawsuit,” Trade Minister Agus Suparmanto said in a statement Sunday.

Neighbouring , the world’s second-biggest palm oil producer, has also threatened WTO action against the EU.

Teresa Kok, the minister overseeing Malaysia’s palm oil sector, told AFP on Monday that she will head to Europe in March, and a challenge will not be filed until after then.

She said she wanted to try to convince European officials to change course on her trip.

- Advertisement -

“I want to give my trip a chance and see whether I can avoid filing the case at the WTO,” she added.

Palm oil is the world’s most widely used vegetable oil and a key ingredient in a wide range of products from food to cosmetics.

But environmentalists say it drives deforestation, with huge swathes of Southeast Asian rainforest logged in recent decades to make way for palm plantations.

Iman Pambagyo, Indonesia’s director general for trade negotiations, said Jakarta had previously tried other bilateral avenues to reach an agreement, without success.

- Advertisement -

“We need to assert Indonesia’s stance on EU policy,” Pambagyo said, referring to the WTO complaint, and adding that he hoped for a “best solution”.

© Agence France-Presse

- Advertisement -
Advertisement

Popular

Jason Momoa video calls young Aquaman fan battling cancer. Their wholesome conversation may melt your heart

, Nov. 21 -- Jason Momoa, famously known for playing Aquaman, took to Instagram on November 19 to share...

Patriot rubbishes DBKL liquor ban as infringement of non-Muslim rights

KUALA LUMPUR, Nov. 22 -- Veterans' group Persatuan Patriot Kebangsaan (Patriot) has condemned the recent decision by Kuala Lumpur...
YouTube
LinkedIn
LinkedIn
Share
Instagram