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Indonesia Files Lawsuit Against EU At WTO Over Palm Oil

Published on Dec 16 2019 7:40 AM in Supply Chain tagged: Trending Posts / Palm Oil / EU / Indonesia / WTO

Indonesia Files Lawsuit Against EU At WTO Over Palm Oil

Indonesia has filed a lawsuit at the World Trade Organisation against the European Union, claiming the bloc's restrictions on palm oil-based biofuel are unfair, the country's trade ministry said in a statement on Sunday.

The European Commission concluded earlier this year that palm oil cultivation results in excessive deforestation and its use in transport fuel should be phased out by 2030.

Indonesia, the world's biggest producer of palm oil, has repeatedly said it will challenge the EU's renewable energy directive, known as RED II, at the WTO’s dispute settlement body.

Request For Consultation

Indonesia sent a request for consultation to the EU on 9 December, 2019, as the initial initiation stage in the lawsuit, the statement said.

Trade minister Agus Suparmanto said the decision was made after assessing scientific studies and after meetings with associations and businesses involved in the palm oil sector.

"With this lawsuit, Indonesia hopes the EU can change their RED II and delegated regulation policies," said Suparmanto.

Indonesia's director general of foreign trade, Indrasari Wisnu Wardhana, said the EU's policy would not just impact Indonesia's palm oil exports to Europe, but would also tarnish the image of palm oil products globally.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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