Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia

Indonesia is the world's leading producer of palm oil, with significant exports to European Union member states. However, the EU has recently imposed stricter limitations on palm oil imports, particularly from Indonesia, through policies such as the Renewable Energy Directive (RED) and RED II....

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Main Authors: Chairul Fahmi, Peter-Tobias Stoll
Format: Article
Language:English
Published: Faculty of Law, Universitas Sebelas Maret, Surakarta 2024-12-01
Series:Bestuur
Subjects:
Online Access:https://jurnal.uns.ac.id/bestuur/article/view/94203
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author Chairul Fahmi
Peter-Tobias Stoll
author_facet Chairul Fahmi
Peter-Tobias Stoll
author_sort Chairul Fahmi
collection DOAJ
description Indonesia is the world's leading producer of palm oil, with significant exports to European Union member states. However, the EU has recently imposed stricter limitations on palm oil imports, particularly from Indonesia, through policies such as the Renewable Energy Directive (RED) and RED II. This article examines the measures imposed by the WTO to address this trade dispute. Using a doctrinal approach, the study collects data from primary legal sources, such as laws, regulations, and court decisions, as well as secondary sources, including journals and books. The findings reveal that Indonesia's request for negotiations with the EU was rejected, prompting the WTO to establish a panel. However, the panel's decision lacks legal force until the appeal process is concluded. The situation is further complicated by the Appellate Body's inability to function due to the United States’ deliberate refusal to approve new appointments, leaving the dispute unresolved. Consequently, the WTO Dispute Settlement Body's ruling lacks legal certainty, raising the potential for a trade war between Indonesia and the EU. This research underscores the need for effective dispute resolution mechanisms within the WTO to address such critical trade issues.
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institution Kabale University
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publishDate 2024-12-01
publisher Faculty of Law, Universitas Sebelas Maret, Surakarta
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spelling doaj-art-a1497ca15369486f889542b876a21c2f2025-01-20T12:13:48ZengFaculty of Law, Universitas Sebelas Maret, SurakartaBestuur2302-37832722-47082024-12-0112217219010.20961/bestuur.v12i2.9420344595Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from IndonesiaChairul Fahmi0Peter-Tobias Stoll1Universitas Islam Negeri Ar-Raniry Banda AcehUniversity of GottingenIndonesia is the world's leading producer of palm oil, with significant exports to European Union member states. However, the EU has recently imposed stricter limitations on palm oil imports, particularly from Indonesia, through policies such as the Renewable Energy Directive (RED) and RED II. This article examines the measures imposed by the WTO to address this trade dispute. Using a doctrinal approach, the study collects data from primary legal sources, such as laws, regulations, and court decisions, as well as secondary sources, including journals and books. The findings reveal that Indonesia's request for negotiations with the EU was rejected, prompting the WTO to establish a panel. However, the panel's decision lacks legal force until the appeal process is concluded. The situation is further complicated by the Appellate Body's inability to function due to the United States’ deliberate refusal to approve new appointments, leaving the dispute unresolved. Consequently, the WTO Dispute Settlement Body's ruling lacks legal certainty, raising the potential for a trade war between Indonesia and the EU. This research underscores the need for effective dispute resolution mechanisms within the WTO to address such critical trade issues.https://jurnal.uns.ac.id/bestuur/article/view/94203dispute resolutioneuropean unionindonesiapalm oilworld trade organisation
spellingShingle Chairul Fahmi
Peter-Tobias Stoll
Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia
Bestuur
dispute resolution
european union
indonesia
palm oil
world trade organisation
title Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia
title_full Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia
title_fullStr Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia
title_full_unstemmed Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia
title_short Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia
title_sort measuring wto approaches in resolving palm oil and biofuel trade disputes from indonesia
topic dispute resolution
european union
indonesia
palm oil
world trade organisation
url https://jurnal.uns.ac.id/bestuur/article/view/94203
work_keys_str_mv AT chairulfahmi measuringwtoapproachesinresolvingpalmoilandbiofueltradedisputesfromindonesia
AT petertobiasstoll measuringwtoapproachesinresolvingpalmoilandbiofueltradedisputesfromindonesia