EU-Scraps Anti-Dumping Duty for Indonesian Biodiesel

Thursday, March 29, 2018

The European Union (EU) has removed an anti-dumping duty for biodiesel imports of Indonesian and Argentine producers, after the former country won an appeal at the European Court of Justice, reported the Antara News in Jakarta last week.  Oke Nurwan, the Trade Ministry‘s Foreign Trade Director General, said that following the verdict, the EU will remove its anti-dumping duty of Indonesian biodiesel products which has run from 8.8 percent to 23.3 percent.  And following the end of the dispute, the Indonesian government hopes the palm oil trade will return to normal.

Nurwan explained that the verdict will apply to some producers who have filed a lawsuit with the EU court. Hence, other biodiesel importers will need to await a resolution announced by the Dispute Settlement Body of World Trade Organization (DSB WTO).  Apart from Indonesian producers, the EU will also scrap the anti-dumping duty on Argentine’s biodiesel product.  Some companies that will be exempted from the duty include Argentine’s Bunge Cargill, Louis Dreyfus, Molinos Rio de la Plata, as well as Indonesian producers Ciliandra Perkasa and Wilmar. 

According to the Central Statistics Agency (BPS), Indonesian biodiesel export to European countries reached US$1.4 billion in 2011.  However, the figure plunged since EU imposed an anti-dumping duty in 2013.  During 2013-2016 period, the biodiesel export to European countries significantly declined by 42.8 percent, from US$649 million in 2013 to $150 million in 2016. Indonesian export reached its lowest point in 2015, with $68 million.

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