April 27, 2024

Indonesia requests the overthrow of anti-dumping tariffs on fatty alcohols used in the chemical industry

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China Drying Network News Indonesia on Monday filed a complaint with the World Trade Organization (WTO) on the anti-dumping duties levied by the European Union on the country's exports of fatty alcohols, demanding that the European Union’s sanctions be rejected.

In a complaint submitted to the World Trade Organization, Indonesia called for the overthrow of anti-dumping tariffs imposed by the EU on fatty alcohols used in the chemical industry in Indonesia. Such tariffs are usually imposed when the importing country considers that the price of the product is unfairly discounted. In the complaint, Indonesia asked to “consult” with the EU, which is the first step in the dispute resolution process. If the parties cannot reach an agreement within 60 days, they may escalate into judicial confrontation.

The Indonesian experience is also the latest example of the large developing economies being subject to sanctions for export products being suspected of unfair pricing or improper subsidies. India, China and Brazil have also initiated multiple similar complaint procedures in the past four months. The United States, Japan, and the European Union also expressed their dissatisfaction with Indonesia’s “locally-controlled” rules for investment in telecommunications and energy sectors, and filed complaints in the World Trade Organization, arguing that this rule is unfairly discriminatory against foreign companies.

The most recent Indonesian launch of a similar procedure at the World Trade Organization was in April 2012, and at that time it had won an appeal against the U.S. ban on clove-flavored cigarette sales decisions in the United States. Indonesia produces the vast majority of similar flavored cigarettes in the world. Other products include cherry and cinnamon flavored tobacco. This US decree originally intended to prohibit children from smoking, but Indonesia believes that the decree does not prohibit mint-flavored tobacco and is therefore suspected of discrimination.

According to the data, Indonesia had never been the defendant of the WTO's trade lawsuit since the establishment of the World Trade Organization in 1996. However, the country’s trade practices are increasingly questioned, including the U.S. complaints about its import barriers and Japan’s allegations of restrictions on metal exports.

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