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Indonesia hits European Union with WTO lawsuit over palm oil

Christian Fernsby |
Indonesia on Sunday said it has filed a World Trade Organisation lawsuit against the European Union over plans to phase out palm oil-based biofuel for cars, the trade ministry said.

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Topics: INDONESIA    EUROPEAN UNION    WTO    PALM OIL    LAWSUIT    

The action could escalate a trade dispute between Indonesia the world’s top palm oil producer and the EU, which plans to end its use of biofuels by 2030, citing concerns over widespread deforestation caused by the sector.

The EU earlier imposed duties on imports of subsidised biodiesel from Indonesia saying it was needed to level the playing field for its producers.

In response to what it called “discriminative” policies against its key palm oil exports, Indonesia said it filed a complaint with the WTO last week.

“Indonesia officially sent a request for consultation on December 9, 2019 to the EU as the initial step for the lawsuit,” Trade Minister Agus Suparmanto said in a statement Sunday.


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