EU Requests WTO Intervention Over Indonesian Steel Export Restrictions

The World Trade Organization should rule on “unlawful” export restrictions imposed by Indonesia on raw materials used for the production of stainless steel, the European Union said in a Jan. 14 news release. The EU said Indonesia’s export ban on nickel ore and its “domestic processing requirements” on nickel ore and iron ore “illegally restrict access” of raw materials for EU steel producers. The processing requirements force businesses to subject their raw materials to “certain processing or purification operations in Indonesia prior to exporting them,” the EU said, which “unduly restricts exports of unprocessed raw materials.”

EU Trade Commissioner Valdis Dombrovskis said the bloc has made “repeated attempts to resolve this issue directly with Indonesia,” adding that the EU’s steel sector is going through “very challenging times” and is faced with a global overcapacity. “No WTO member is permitted to restrict exports of raw materials in this way, imposing illegal restrictions to favour domestic producers,” Dombrovskis said. “We will take the necessary measures to restore fair conditions for the EU steel industry, as is our right.”