Indonesia Launches WTO Dispute Against EU Over Fatty Acids

WORLD TRADE ORGANIZATION / WTO - GENEVA. Indonesia filed a complaint at the World Trade Organization against the European Union for its import duties on fatty acids, the global trade watchdog said on Monday.

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The filing said that the EU measures were inconsistent with WTO rules. Fatty acids which use palm oil as a key raw ingredient are found in both consumer products like cosmetics and medicine and industrial lubricants.

The European Union said in January 2023 that it would begin imposing duties of between 15.2% and 46.4% on Indonesian imports which it said was harming EU industry.

"They will help to ensure fair competition between fatty acid imported from Indonesia and locally produced fatty acid," it said.

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Indonesia's so-called "request for consultations" is the first step in a formal WTO dispute. It gives both parties around 60 days to resolve their differences before a formal WTO adjudication panel is formed.