World Trade Organization moves ahead with Indonesia’s complaint against European Union

In Indonesia, the Palm Oil Monitor reports that Indonesia has successfully pushed for the World Trade Organization to form a panel in its complaint against the EU’s revised Renewable Energy Directive (RED II). The Panel was announced Wednesday as part of a series of WTO meetings last week.

The complaint was originally put forward by Indonesia in December 2019. After the complaint was put forward, Indonesia and the EU held a number of consultations to see if the matter could be resolved by other means. In March of this year, it became clear this would be impossible, and Indonesia requested the formation of a dispute settlement panel. The forming of the panel this week was in many ways just a formality.

RED II excludes the use of palm oil within the EU’s renewable fuel subsidy scheme. The scheme provides subsidies to fuels such as biodiesel sourced from different feedstocks. This includes biodiesel sourced from soybean, rapeseed and other vegetable oils. Palm-based biodiesel is the only vegetable oil-based fuel that has been excluded.

Here’s a recap of events to date from the Palm Oil Monitor.