Overview

On 22 November 2019, the delegation of the European Union (“EU”) requested that the World Trade Organization (“WTO”) initiate consultations with the Indonesian Government regarding various measures that relate to certain raw minerals that are necessary for the production of stainless steel, as well as the cross-sectoral, import-duty exemption scheme that is conditional upon the use of domestic goods over imported goods. The request submitted by the EU addresses several alleged infringements, including: 1) Restrictions on exports of nickel; 2) Domestic processing requirements for nickel, iron, ore, chromium and coal; 3) Domestic marketing obligations for nickel and coal products; 4) Export licensing requirements for nickel. The EU alleges that these measures violate several provisions originally set under the 1994 General Agreement on Tariffs and Trade (“GATT”).[1]