At a meeting on 28 August of the Dispute Settlement Body (DSB), WTO members adopted a panel report regarding the European Union's anti-dumping duties on imports of fatty acid from Indonesia.
DS622 European Union - Anti-Dumping Measures on Imports of Fatty Acid from Indonesia
Indonesia said it welcomed the panel's findings in DS622 and proposed that the DSB adopt the report. In particular, it welcomed the panel's finding that the European Union had imposed an anti-dumping duty in excess of the established margin of dumping by failing to use the rate of exchange on the date of sale when converting certain export transactions from euro to US dollars, in violation of the WTO's Anti-Dumping Agreement (ADA). Indonesia said it looked forward to the EU's prompt implementation of the panel's recommendation and rulings. Indonesia said it was confident that the EU shares its commitment to resolve this matter effectively, and it stands ready to engage in discussion regarding the implementation process.
The European Union said the panel confirmed the WTO consistency of almost all aspects of the EU's anti-dumping investigation and definitive measure. It welcomed in particular the panel's finding on the anti-dumping investigation after the withdrawal of the complaint, on the injury determination, and on Indonesia's challenge to the alleged methodology for constructing normal value. On the matter wherein the EU was found to have acted inconsistently with the ADA, the EU said this was a narrow specific issue concerning the exchange rate used for currency conversion in a minor portion of export transactions. The EU said its decision not to appeal these findings should not be seen as acceptance of the panel's reasoning, which, in any event, should not be regarded as establishing precedent.
The DSB adopted the panel report.
Under the WTO's Dispute Settlement Understanding, the European Union will now have 30 days to inform the DSB of its intentions in respect to implementation of the panel's findings.
Next DSB meeting
The next regular meeting of the DSB will take place on 25 September.
Note
This summary has been prepared by the WTO Secretariat’s Information and External Relations Division to help public understanding about developments in WTO disputes. It is not a legal interpretation of the issues, and it is not intended as a complete account of the issues. These can be found in the reports themselves and in the minutes of the Dispute Settlement Body’s meetings.