Indonesia — Measures Relating to Raw Materials

 

Short title:	Indonesia — Raw Materials
Complainant:	European Union
Respondent:	Indonesia
Third Parties (original proceedings):	Brazil; Canada; China; Japan; Korea, Republic of; India; Russian Federation; Saudi Arabia, Kingdom of; Singapore; Chinese Taipei; Turkey; Ukraine; United Arab Emirates; United Kingdom; United States
Agreements cited: (as cited in request for consultations)	Art. X:1, XI:1  GATT 1994 Art. 3.1(b)  Subsidies and Countervailing Measures (SCM)
Agreements cited: (as cited in panel request)	GATT 1994   GATT 1994
Consultations requested:	22 November 2019
Panel requested:	14 January 2021
Panel established:	22 February 2021
Panel composed:	29 April 2021
Panel report circulated:	30 November 2022

 

Summary of the dispute to date

 

The summary below was up-to-date at 7 February 2023 

 

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:

 

- 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;

 

- the prohibited subsidy scheme appears to be inconsistent with Article 3.1(b) of the SCM Agreement; and

 

- 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.

 

On 1 November 2021, the Chair of the panel informed the DSB that, in accordance with the timetable adopted thus far following consultations with the parties, the panel estimated that it would issue its final report to the parties in the last quarter of 2022. In its communication, the Chair apprised the DSB that the report would be available to the public once it was circulated to the Members in all three official languages, and that the date of circulation depends on completion of translation.

 

On 30 November 2022, the panel report was circulated to Members.

 

On 8 December 2022, Indonesia notified the DSB of its decision to appeal to the Appellate Body certain issues of law and legal interpretations in the panel report. On 12 December 2022, the European Union informed the DSB that it had taken note of Indonesia's notification of its appeal and that, given the current non-operational situation of the Appellate Body, it considered that all subsequent procedural deadlines set out in the Appellate Body's Working Procedures were to be considered as suspended. The European Union indicated that when the Appellate Body resumes its functions, it should set the schedule for this appeal. The European Union further indicated its intention to file a written submission and make an oral statement in accordance with the schedule to be determined by the Appellate Body. The European Union noted its disagreement with Indonesia's appeal.