17-8-2023 (BRUSSELS) The European Union (EU) has initiated an investigation into potential circumvention by Indonesia regarding EU duties on biodiesel imports originating from the country. The inquiry will specifically focus on whether Indonesia is utilizing routes through China and Britain to evade these duties.
This investigation comes in response to a formal request from the European Biodiesel Board, a significant association within the biodiesel industry. The European Commission, responsible for overseeing matters concerning the EU’s interests, announced the initiation of the probe in the EU’s official journal.
According to the European Commission, the request submitted by the European Biodiesel Board has presented substantial evidence suggesting that existing countervailing measures imposed on imports of the specific biodiesel product are being bypassed through the use of imports currently under scrutiny.
The official statement from the European Commission outlines, “The request contains sufficient evidence that the existing countervailing measures on imports of the product concerned are being circumvented by imports of the product under investigation.”
Moreover, the European Commission acknowledges the alteration in trade patterns that has unfolded subsequent to the imposition of the established countervailing measures. This change is linked to exports originating from Indonesia, the People’s Republic of China, and the United Kingdom towards the EU.
Consequently, the European Commission asserts, “A change in the pattern of trade involving exports from Indonesia and the People’s Republic of China and the United Kingdom to the Union has taken place following the imposition of the existing countervailing measures.”
Notably, this development emerges in the aftermath of Indonesia’s own actions on the international trade stage. In response to the EU’s imposition of duties on biodiesel imports from Indonesia, the country requested dispute consultations through the World Trade Organization (WTO).
The intricacies of international trade and the measures in place to ensure fairness and adherence to regulations are at the heart of this investigation. As the EU delves into these circumstances, the global trade landscape may see shifts that reflect the broader efforts to maintain equitable trade practices.
