Indonesia is set to file a complaint at the World Trade Organization (WTO)'s Dispute Settlement Body (DSB) later this month over the anti-dumping duties that were imposed by the European Union (EU) on biodiesel exports from Indonesia. Since the implementation of these anti-dumping duties in 2013 - ranging between 8.8 to 20.5 percent or €76.94 to €178.85 per ton - Indonesia's biodiesel exports to the EU plunged severely, from USD $625 million in 2013 to an estimated USD $9 million in 2017.
In a statement released on Sunday (19/03) Indonesia says the EU's anti-dumping duties on biodiesel are a form of injustice and are inconsistent with the WTO's Anti-Dumping Agreement (ADA). Meanwhile, Indonesia also disputes the calculations of the duties. Security Pradnyawati, Indonesia's Director of Trade Security said Indonesia is ready to file the complaint at the 29-30 March 2017 meeting at the WTO's headquarters in Geneva (Switzerland).
The anti-import duties on biodiesel (set for the 2013-2018 period) are a burden on Indonesia. Over the past couple of years Southeast Asia's largest economy has been eager to boost the production of biodiesel (diesel blended with palm oil) both for domestic consumption and export. The EU is a lucrative market for Indonesia's biodiesel exports. However, the anti-dumping duties undermine its earnings.
Not only Indonesia is affected by these anti-dumping duties on biodiesel. Argentina experienced the same trouble (Argentina uses soybeans for its biodiesel). According to the EU biodiesel shipments from Indonesia and Argentina are unfair (in terms of prices) because both countries can produce the biodiesel in a cheap manner (Indonesia is the world's biggest crude palm oil producer, while Argentina is a major soybean producer). Thus, due to cheaper production costs, they can sell it for relatively low prices in the EU.
After Argentina filed a complaint last year, a EU court ruled (in September 2016) to annul the anti-dumping duties that were imposed on exporters of biodiesel from Argentina. Based on the positive result of Argentina's complaint, Indonesia expects to see a positive result as well from its complaint later this month.