Jakarta. The European Union, or EU, has appealed a World Trade Organization (WTO) ruling that supported Indonesia in a dispute over stainless steel.

In 2023, Jakarta sued the EU for slapping anti-dumping duties of up to 20.2 percent on Indonesian stainless steel cold-rolled flat products. Countervailing duties of 21.4 percent had been in place on the same goods since 2022.

Last month, a WTO panel ruled that the EU's actions were inconsistent with international trade rules, potentially clearing the way for Indonesian stainless steel shipments. A European diplomat confirmed Thursday that the grouping had requested the Appellate Body -- the WTO’s top appeals court -- to review the ruling in hopes of reversing the panel decision. 

"The EU believes that the WTO panel should be corrected in some of its conclusions," EU Ambassador to Indonesia Denis Chaibi said in Jakarta.

At the same time, the EU acknowledged that its appeal might not see progress anytime soon. This seven-member body of judges has been unable to hear new or pending appeals since December 2019, following a blockage by the US. 

For this reason, the European bloc is nudging Indonesia to agree to take the case to the Multi-Party Interim Arbitration Agreement (MPIA). This is a separate alternative system that allows countries to lodge appeals as the Appellate Body remains in limbo. Indonesia has yet to subscribe to the MPIA mechanism.

“We are aware that the Appellate Body doesn’t meet. This is why we call upon Indonesia to join the alternative mechanism [of MPIA]. … So we can find an agreement to move forward on this,” Chaibi told reporters.

Edi Pambudi, a deputy at the Coordinating Ministry for Economic Affairs, neither confirmed nor denied when asked whether Indonesia was open to the MPIA system. He insisted that Jakarta would only accept mechanisms that are “part of the WTO framework”. 

The senior official commented on the US-induced WTO crisis. The first Donald Trump administration had blocked new appointments over alleged judicial activism. Things are unlikely to change under Trump 2.0. Edi admitted that Jakarta was not the only one that had wished Trump to change his mind. 

“I don’t think this is a matter that only involves Indonesia when it comes to convincing the US [to revive the Appellate Body]. But at the end of the day, it’s up to them [the US],” Edi said. 

The appeal came not long after Indonesia unveiled the substantive conclusion to its much-awaited trade pact with the EU. This accord, better known as the Comprehensive Economic Partnership Agreement (CEPA), will grant major tariff eliminations. However, both Chaibi and Edi admitted that the CEPA and the trade dispute were two separate matters. Indonesia has set a goal for the CEPA to take effect in January 2027.

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