GENEVA/JAKARTA, Feb 12 – Indonesia has lodged a formal complaint with the World Trade Organization (WTO) against the European Union concerning the EU’s imposition of import duties on fatty acids. This move was announced by the WTO on Monday. In January 2023, the EU implemented import duties ranging from 15.2% to 46.4% on fatty acids from Indonesia, citing the protection of European industry from undue harm as the reason for the tariffs. Fatty acids, which are derived primarily from palm oil, are utilized in a variety of products, including consumer goods like cosmetics and medicines, as well as in industrial lubricants.
A senior official from Indonesia’s trade ministry, Budi Santoso, conveyed to Reuters that the Indonesian government and its exporters believe the EU’s policy infringes upon WTO rules. Indonesia is currently awaiting a response from the EU to its request for consultations on the matter. The imposition of these duties has significantly impacted Indonesia’s fatty acid exports to the EU, with figures showing a decline of nearly 60% to $154 million in 2023, down from $373 million in 2022, prior to the introduction of the tariffs.
The European Union has defended the imposition of the duties, stating that they are intended to ensure fair competition between fatty acids imported from Indonesia and those produced within the EU.
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