JakartaGlobe-Oct 24
An expert said Tuesday that Indonesia could file a lawsuit against the European Union (EU) at the World Trade Organization (WTO) for the bloc’s protectionist green policies. The EU’s environment-related policies are sparking concerns in Indonesia. The EU’s anti-deforestation regulation — also known by its acronym EUDR — requires certain commodities such as palm oil to be deforestation-free before entering the European market. According to senior economist Mari Elka Pangestu, the EU could be imposing protectionist or import-restricting policies under the pretense of saving the planet. “If we speak of protectionism, we are incredibly worried about Europe’s green policies. Are they really green or is this a hidden protectionism?” Mari, who formerly served as a managing director at the World Bank, told the 2023 BNI Investor Daily Summit at Hutan Kota by Plataran on Tuesday. “We can take this matter to the WTO. We are aware how the dispute settlement is currently not functioning, but we need to push for non-discrimination and transparency principles to prevent protectionism,” the former trade minister said. The WTO lawsuit can be part of Indonesia’s efforts to make sure a proper multilateral trading system is in place. “A properly functioning multilateral trading system plays a part in Indonesia and East Asia’s economic growth. That is why we have to fight for the fundamentals of the multilateral trading system, including non-discrimination … and prevent protectionism,” Mari said. The EUDR requires operators and traders to prove their products are not produced on land subject to deforestation after Dec. 31, 2020. They must present the geolocation coordinates of the land where the commodities and products are produced. Top palm oil producer Indonesia said that these coordinate requirements could threaten its smallholders. Read more at: https://jakartaglobe.id/business/indonesia-can-sue-eu-over-protectionist-green-policy-economist-
