Indonesia plans to take suspension of concessions measures against the European Union

Indonesia will submit to the World Trade Organization’s dispute settlement mechanism a request for “suspension of concessions” targeting the European Union, on the grounds that the EU failed to comply with a WTO ruling in a palm oil lawsuit. Indonesian Trade Minister Budi said in a statement on the 7th that the EU did not adjust its policies on time, or failed to fully implement the rulings and recommendations of the palm oil dispute settlement mechanism, and therefore Indonesia decided to file a “suspension of concessions request” with the WTO (Suspension-of-concessions request). He said that the suspension-of-concessions request mainly focuses on goods trade, but the Indonesian government does not rule out seeking suspension of concessions in other areas. The WTO “suspension of concessions” is an authorized retaliatory measure: when a member fails to implement a ruling by the WTO Dispute Settlement Body, the injured party may, with authorization from the WTO, suspend the performance of obligations such as tariff concessions against the violating party. This usually takes the form of unilateral imposition of retaliatory tariffs, with the aim of forcing the violating party to comply with multilateral rules. (Cailian Press)