The Role of the WTO in Mediate Dispute Palm Oil Between Indonesia and the European Union

Abstract

Several major European countries, such as France and Germany, have included CPO in the list of non-environmentally friendly products. Some countries impose additional import duties because CPO is considered as damaging as alcohol. This research is descriptive and uses a normative juridical approach. There are several demands put forward by the European Union for palm oil entering its territory, these demands include the importation of palm oil, either for food or for industrial purposes. Hence, the European Union requires sustainable palm oil production. Besides, the European Union believes that the use of palm oil for fuel production will endanger the sustainability of other foodstuffs, especially for the poor. The European Union's accusation of environmental threats is considered impure as environmental protection. Many argue that the accusation is only a political step by the European Union in anticipating the development of exports of Indonesian CPO products to Europe.

Just Transition in Biofuel Development towards Low-Carbon Economy: Multi-Actor Perspectives on Policies and Practices in Indonesia

“…Further, EU countries implemented non-tariff barriers, citing environmental concerns about palm oil expansion [52]. The EU also accused Indonesia of unfairly subsidising CPO for biodiesel production [53], prompting anti-dumping inquiries. Then, negative media campaigns portrayed Indonesian palm oil as destructive [54], discouraging consumption.…”

Indonesia’s Economic Diplomacy in the Context of the EU’s Palm Oil Embargo: Reaching Out to Turkey as an Alternative Market

“…When the European Union imposed a ban on palm oil imports into Europe, the Indonesian government took the issue to the multilateral level, enlisting the WTO as a mediator. The WTO's involvement is critical for the Indonesian government because it has an organizational chart tasked with problem-solving, namely the Dispute Settlement Body (Sylvana et al, 2020). The other two studies address the issue of oil palm problems due to state policy.…”

Untitled

“…According to , the steps in looking for previous research are to look for differences in aspects of topics, problems, theories, methodologies, or research scopes. One previous study on the palm oil issue discussed the role of the World Trade Organization (WTO) in mediating disputes between Indonesia and the European Union (Sylvana et al, 2020). When the European Union imposed a ban on palm oil imports into Europe, the Indonesian government took the issue to the multilateral level, enlisting the WTO as a mediator.…”