Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia

Abstract

Indonesia has been known as the world's top producer of palm oil. The nation's palm oil products are globally exported, including to European Union member states. But, the EU commission has recently imposed stricter limitations on the import of palm oil, notably from Indonesia, by implementing policies like the Renewable Energy Directive (RED) and RED II. This article aims to elevate the measurement the case that imposed by the WTO in resolving the dispute. It uses the doctrinal approach in which data are gathered from primary legal sources (e.g., laws, legal theory, court decisions, expert opinions, regulations, legal theories) and secondary resources such as library materials (e.g., journals, books, documents) that are relevant to the topics discussed in this paper. The result shows that the EU has rejected Indonesia's request for negotiations, and prompted the WTO to establish a panel body. But, the decision of panel does not have legal force until the appeal process has reached final decision. However, the panel's judgment is not conclusive, as the involved parties still have the option to lodge an appeal. Finally, the appeal body is unable to achieve the required number of members due to a deliberate refusal by the United States, then, the ruling of the WTO dispute body lacks legal definiteness, which might potentially result in a trade war between Indonesia and the European Union.