The European Union has requested WTO dispute consultations with Indonesia regarding alleged export restrictions and local content subsidies adopted by Indonesia with respect to certain raw materials. The request was circulated to WTO members on 27 November.
The EU claims that Indonesia’s export prohibitions, domestic processing and marketing requirements, and export licensing requirements applicable to raw materials, including nickel, iron ore, chromium, coal, metal waste and scrap and coke, are inconsistent with Article XI:1 of the General Agreement on Tariffs and Trade (GATT) 1994. The EU also claims that an import duty exemption scheme constitutes a subsidy contingent upon the use of domestic over imported goods prohibited under Article 3.1 (b) of the Agreement on Subsidies and Countervailing Measures.
Further information is available in document WT/DS592/1
What is a request for consultations?
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
Source: wto.org