WTO Forms RI-EU Dispute Panel Related To Indonesian Steel Products

JAKARTA - The World Trade Organization Dispute Settlement Agency (DSB WTO) on May 30 formed a panel of Indonesia's trade disputes with the European Union regarding the policy of imposing fees and EU anti-dumping duties for Indonesian steel products.

"The implementation of the EU policy has abolished or reduced the profits made by Indonesia directly or indirectly based on the related agreement," said Deputy Permanent II RI for WTO Dandy Satria Iswara as reported by ANTARA, Thursday, June 1.

Previously, on January 24, 2023, Indonesia had asked for consultation with the EU regarding the imposition of duties on fees and anti-dumping on Indonesian steel products.

Indonesia emphasizes that these measures are inconsistent with EU obligations based on the Subsidies and Countervailing Measures Agreement, Anti-Dumping Agreement, and the 1994 General Agreement on Tariffs and Trade (GATT).

Consultations between the two parties took place on March 13, 2023, but were unable to produce a solution to the dispute.

In this regard, the request for panel formation was first conveyed by Indonesia on April 18, 2023. As stated in Article 6.1 Dispute Settlement Understanding (DSU), the panel will automatically be formed at the next DSB meeting (DSB May 2023) after the request for the formation of the first panel was submitted.

In its response, the EU is of the view that its policies are in accordance with the WTO agreement and the panel will enforce the policy.

Although disappointed with Indonesia's decision to form a dispute panel, the EU acknowledged that the decision was Indonesia's right.

The EU also expressed readiness to discuss with Indonesia regarding temporary reciprocal arrangements based on Article 25 of the DSU as long as the WTO Appeal Agency does not function.

Furthermore, at the meeting there were also 14 WTO members who expressed their desire to become third parties to the dispute, namely the United States, Argentina, Brazil, China, India, England, Japan, Canada, South Korea, Russia, Singapore, Thailand, Turkey, and Ukraine.

This shows the great attention and interest of WTO members in the trade dispute case.

In accordance with Article 7.1 of the DSU, Indonesia and EU are expected to agree on a reference panel framework within 20 days of the formation of a panel.