DISPUTE SETTLEMENT

DS: Indonesia — Measures Relating to Raw Materials

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

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Consultations

Complaint by the European Union

On 22 November 2019, the European Union requested consultations with Indonesia regarding various measures concerning certain raw materials necessary for the production of stainless steel, as well as a cross-sectoral import duty exemption scheme conditional upon the use of domestic over imported goods. The request covers the following alleged measures: (a) restrictions on exports of nickel, including an actual prohibition to export; (b) domestic processing requirements for nickel, iron ore, chromium and coal; (c) domestic marketing obligations for nickel and coal products; (d) export licensing requirements for nickel; and (e) a prohibited subsidy scheme.

The European Union claimed that:

  1. the measures restricting the exports of certain raw materials, including those requiring domestic processing requirements, domestic marketing obligations, and export licensing requirements, appear to be inconsistent with Article XI:1 of the GATT 1994;
     
  2. the prohibited subsidy scheme appears to be inconsistent with Article 3.1(b) of the SCM Agreement; and
     
  3. the failure to promptly publish the challenged measures appears to be inconsistent with Article X:1 of the GATT 1994.

On 6 December 2019, the United States requested to join the consultations.

 

Panel and Appellate Body proceedings

On 14 January 2021, the European Union requested the establishment of a panel. At its meeting on 25 January 2021, the DSB deferred the establishment of a panel.

At its meeting on 22 February 2021, the DSB established a panel. Brazil, Canada, China, India, Japan, Korea, the Russian Federation, Saudi Arabia, Singapore, Chinese Taipei, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, and the United States reserved their third-party rights.

On 19 April 2021, the European Union requested the Director-General to compose the panel. On 29 April 2021, the Director-General composed the panel.

 

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