Jakarta (Antara Bali) - The Foreign Trade Directorate General has appealed to the Appellate Body of the World Trade Organization (WTO) against the decision of the Dispute Settlement Body (DSB) of the WTO over Indonesia's certain fatty acid.
Certain fatty alcohol, a derivative of palm oil, could be used as the main basic material of surfactant, which is used in the production of detergent, body treatment products and cosmetics.
Indonesia protested the decision of the DSB, which favored the European Union with the application of Articles 2.3 and 2.4, and Articles 3.1 and 3.5 of Anti-Dumping Agreement (ADA). Indonesia was favored only in its claim related to article 6.7 of ADA on transparency of investigation report.
The decision of the DSB panel favored the EU with a 2:1 position against Indonesia.
"SEE is used by almost all Indonesian producers and exporters in the palm oil sector. The decision of DSB panel on SEE, if won by Indonesia, could be jurisprudence for similar issues in the future," Director of Trade Security Pradnyawati said.
The terminology of SEE, means a parent company and subsidiaries are considered an economic unit.
The Indonesia protest followed an anti dumping investigation by the European Commission starting 13 August, 2010 on petition by two EU certain fatty alcohol producers - Cognis Gmbh and Sasol Olefins & Surfactants Gmbh.
Based on the result of the investigation, EU slapped selective anti dumping import duty of 45.63 euro/MT - 80.34 euro/MT on Indonesian producers and exporters from 8 Nov. 2011 until November 2016.
Following the EU decision, Indonesian producers and exporters filed an appeal with local General Court of the EU which freed one producers/exporter from the anti dumping import duty penalty.
Before the imposition of the anti dumping import duty, imports of certain fatty alcohols from Indonesia by the European Union were valued at US$53.5 million in 2009, up 45.16 percent to US$112.6 million in 2011.
After the decision on the anti dumping import duty, the Indonesian exports of certain fatty alcohol to the EU dropped to US$109.2 million in 2012. In 2013, the export value rose to US$119.4 million, but shrank in the following year to only US$69.1 million and to US$58.9 million in 2016.
In the period of 2012-2016, after the imposition of the anti dumping import duty, Indonesia's exports of certain fatty alcohol shrank by 20.42 percent annually on the average.
Indonesia's exports of certain fatty alcohol to the EU valued at US$71.6 million or 13.87 percent of the country's total exports of that commodity which totaled US$515.9 million in 2016. (*)
