Indonesia brings first WTO suit against EU

Reuters News
Posted: Jul 30, 2012 10:19 AM
Indonesia brings first WTO suit against EU

By Tom Miles

GENEVA (Reuters) - Indonesia launched its first complaint against the European Union at the World Trade Organization on Monday, four months after winning a WTO court challenge against the United States.

The challenge seeks to overturn EU anti-dumping duties on imports of Indonesian fatty alcohols, which are used in the chemicals industry, the WTO said. Such duties are imposed when a country thinks imports are priced at an unfair discount.

By demanding "consultations" with the EU, Indonesia has triggered the first stage in a trade dispute, which may escalate into an adjudication battle if not resolved within 60 days.

The case is the latest in a series of challenges in which big developing economies are hitting back at assertions that their exports are unfairly priced or subsidized. India, China and Brazil have all initiated such disputes in the past four months.

Indonesia's last involvement in litigation ended in April when it won an appeal against a U.S. ban on the sale of clove-flavored cigarettes, most of which come from Indonesia, as well as other flavors such as cherry and cinnamon.

(Reporting by Tom Miles; Editing by Angus MacSwan)