EUROPEAN UNION – COUNTERVAILING DUTIES ON
IMPORTS OF BIODIESEL FROM INDONESIA
Request for the Establishment of a Panel by indonesia
The
following communication, dated 13 October 2023, from
the delegation of Indonesia to the Chairperson of the Dispute Settlement Body,
is circulated pursuant to Article 6.2 of the DSU.
_______________
On 11 August 2023, Indonesia requested
consultations with the European Union ("EU") pursuant to Articles 1
and 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes ("DSU"), Article 30 of the Agreement on Subsidies and
Countervailing Measures ("SCM Agreement"), and Article XXIII of the
General Agreement on Tariffs and Trade 1994 ("GATT 1994"), concerning
the imposition of countervailing duties on imports of biodiesel from Indonesia.
The consultations
took place in Geneva on 4 October 2023 and failed to resolve the dispute.
Hence, Indonesia is requesting the establishment of a Panel pursuant to Article
4.7 and 6 of the DSU.
The measures at
issue are the definitive countervailing duties on imports of biodiesel from
Indonesia as well as the underlying investigation that led to the imposition of
these measures (hereafter "countervailing measures"), which include,
amongst others, the actions taken or omitted by the European Commission
("Commission") during the course of – or in relation to – the
investigations.
The
countervailing measures are evidenced by the Commission Implementing Regulation
(EU) 2019/2092 of 28 November 2019 imposing a definitive countervailing duty on
imports of biodiesel originating in Indonesia[1]
("the Biodiesel Definitive CVD Regulation") as well as the Commission
Implementing Regulation (EU) 2019/1344 of 12 August 2019 imposing a provisional
countervailing duty on imports of biodiesel originating in Indonesia ("the
Biodiesel Provisional CVD Regulation").[2]
The legality of countervailing measures should also be reviewed in light of the
findings and determination reached by the EU in the regulations imposing
anti-subsidy measures on imports of biodiesel from Argentina.[3]
Indonesia is concerned
that the Biodiesel Definitive CVD Regulation, the Biodiesel Provisional CVD Regulation
and the investigation leading to the imposition of the countervailing measures
are inconsistent with the following provisions of the SCM Agreement and the
GATT 1994:
[1] Commission
Implementing Regulation (EU) 2019/2092 of 28 November 2019 imposing a
definitive countervailing duty on imports of biodiesel originating in
Indonesia, Official Journal of the European Union, L 317, p. 42-95, dated
9 December 2019.
[2] Commission Implementing Regulation
(EU) 2019/1344 of 12 August 2019 imposing a provisional countervailing duty on
imports of biodiesel originating in Indonesia, Official Journal of the European
Union, L 212, p. 1-52, dated 13 August 2019.
[3] Commission Implementing Decision
(EU) 2019/245 of 11 February 2019 accepting undertaking offers following the
imposition of definitive countervailing duties on imports of biodiesel
originating in Argentina. Official Journal of the European Union, L 40, p.
71-77, dated 12 February 2019; Commission Implementing Regulation (EU) 2019/244
of 11 February 2019 imposing a definitive countervailing duty on imports of
biodiesel originating in Argentina, Official Journal of the European Union, L
40, p. 1-70, dated 12 February 2019.