According to information released on the official website of the EU, the EU held consultations on the drafting of international trade law enforcement regulations related to the dispute settlement of the Indonesian government's nickel ore export ban. The move follows an appeal by Indonesia after it lost a European case at the World Trade Organization (WTO).
These enforcement regulations allow Europe to take countermeasures against violations of trade rules by other countries that affect European business interests.
The rules also allow Europe to block dispute settlement procedures, including those in multilateral, regional, and bilateral trade agreements, thereby preventing the EU from reaching final, binding decisions.
The European Commission's stakeholders have until 11 August 2023 to submit their views on the use of the EU Executive Regulation in this case. The measures offered include tariffs or quantitative restrictions on imports and exports.
At the same time, the EU will continue its efforts to reach an agreement with Indonesia on nickel ore exports, including by continuing to invite Indonesia to join the Multi-Party Interim Appeal Arrangement (MPIA).
The EU believes that Indonesia's policy of stopping nickel ore exports has led to an increase in nickel market prices, hitting the EU and other nickel consumers.
The Benua Biru block subsequently requested consultations with Indonesia through the WTO in 2019. No agreement was reached, and Europe also filed a lawsuit in 2021. As a result, the WTO panel said Indonesia's actions did not comply with WTO rules. After the "verdict" came out, Indonesia filed an appeal in December 2022.
