13-2-2024 (JAKARTA) Indonesia has taken a significant step by filing a complaint at the World Trade Organization (WTO) against the European Union’s import duties on fatty acids, as confirmed by the global trade watchdog on Monday.
The complaint asserts that the EU’s measures are inconsistent with WTO regulations. Fatty acids, which utilize palm oil as a primary raw material, are present in various consumer goods such as cosmetics and pharmaceuticals, as well as in industrial lubricants.
In January 2023, the European Union announced its decision to impose duties ranging from 15.2 per cent to 46.4 per cent on Indonesian imports, citing alleged harm to EU industry.
The EU justified its stance, stating that these measures would foster fair competition between fatty acids imported from Indonesia and those produced locally.
Indonesia’s formal “request for consultations” marks the initial phase of a WTO dispute resolution process. This stage allows both parties approximately 60 days to attempt to reconcile their differences before the formation of a formal WTO adjudication panel.
