DISPUTE SETTLEMENT

DS: European Union and certain Member states — Certain measures concerning palm oil and oil palm crop-based biofuels

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

The summary below was up-to-date at

Consultations

Complaint by Malaysia

On 15 January 2021, Malaysia requested consultations with the European Union (EU), France and Lithuania with respect to certain measures imposed by the EU and EU Member States concerning palm oil and oil palm crop-based biofuels from Malaysia.

Malaysia claimed that certain measures imposed by the EU (the EU renewable energy target, the criteria for determining the high ILUC-risk feedstock, and the sustainability and GHG emission savings criteria) appear to be inconsistent with:

  • Articles 2.1, 2.2, 2.4, 2.5, 2.8, 2.9, 5.1.1, 5.1.2, 5.2, 5.6, 5.8, 12.1 and 12.3 of the TBT Agremeent; and
     
  • Articles I:1, III:4, X:3(a) and XI:1 of the GATT 1994.

Malaysia claimed that certain measures imposed by France (the French General Tax on Polluting Activities — Fuel Tax) and Lithuania (the Law No XI-1375 on renewable energy) appear to be inconsistent with:

  • Articles 3, 3.1(b), 3.2, 5 and 5(c) of the SCM Agremeent; and
     
  • Articles I:1 and III:2 of the GATT 1994.

On 28 January 2021, Colombia requested to join the consultations. On 29 January 2021, Argentina and Indonesia requested to join the consultations. Subsequently, the European Union informed the DSB that it had accepted the requests of Colombia and Indonesia to join the consultations.

 

Panel and Appellate Body proceedings

On 15 April 2021, Malaysia requested the establishment of a panel. At its meeting on 28 April 2021, the DSB deferred the establishment of a panel.

At its meeting on 28 May 2021, the DSB established a panel. Argentina, Australia, Brazil, Canada, China, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Japan, Korea, Norway, the Russian Federation, Saudi Arabia, Singapore, Thailand, Turkey, Ukraine, the United Kingdom, and the United States reserved their third-party rights.

On 19 July 2021, Malaysia requested the Director-General to compose the panel. On 29 July 2021, the Director-General composed the panel.

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