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

 

Short title:	EU and Certain Member States — Palm Oil (Malaysia)
Complainant:	Malaysia
Respondent:	European Union; France; Lithuania
Third Parties (original proceedings):	Argentina; Australia; Brazil; Canada; China; Colombia; Costa Rica; Ecuador; El Salvador; Guatemala; Honduras; India; Indonesia; Japan; Korea, Republic of; Norway; Russian Federation; Saudi Arabia, Kingdom of; Singapore; Thailand; Turkey; Ukraine; United Kingdom; United States
Agreements cited: (as cited in request for consultations)	Art. I:1, III:2, III:4, X:3(a), XI:1  GATT 1994 Art. 3, 5  Subsidies and Countervailing Measures (SCM) Art. 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, 12.3  Technical Barriers to Trade (TBT)
Agreements cited: (as cited in panel request)	Art. I:1, III:2, III:4, X:3(a), XI:1  GATT 1994 Art. 3, 5  Subsidies and Countervailing Measures (SCM) Art. 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, 12.3  Technical Barriers to Trade (TBT)
Consultations requested:	15 January 2021
Panel requested:	15 April 2021
Panel established:	28 May 2021
Panel composed:	30 July 2021

 

Summary of the dispute to date

 

The summary below was up-to-date at 9 May 2022 

 

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.

 

On 7 February 2022, 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 to issue its final report to the parties not before the third quarter of 2022. The Chair of the panel 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.