EU Raises WTO Dispute Over Indonesian Export Restrictions

The European Union has brought a World Trade Organization dispute against Indonesian export restrictions on raw materials used in stainless steel production, the European Commission said Nov. 21. The restrictions “unfairly limit” EU producer access to these materials, namely nickel, scraps, coal, coke, iron ore and chromium, the commission said. The EU is also “challenging” subsidies that “encourage use of local content by Indonesian producers and give preference to domestic over imported goods,” the commission said, calling the subsidies a violation of WTO rules.

In a statement, Trade Commissioner Cecilia Malmstrom said EU steel producers are under pressure and “suffering from the consequences” of worldwide overcapacity and unilateral trade restrictions. Malmstrom said Indonesia has maintained the export restrictions “despite our concerted efforts” and recently announced a new export ban beginning in January. “The export restrictions imposed by Indonesia put further jobs in the EU's steel industry at risk,” Malmstrom said. “We must now act to ensure that international trade rules are respected.”