‘Unacceptable’ EU biofuel tariffs rile Indonesia

Bloomberg

The Indonesian government says the European Union’s (EU) tariffs on the Asian nation’s biodiesel shipments are “unacceptable” and all options to counter the policy are on the table, including retaliatory actions.
The EU imposed five-year tariffs on Indonesian biodiesel imports to counter alleged subsidies to producers of the fuel, which is typically made from palm oil and other fats for use in diesel engines.
When asked whether Indonesia will retaliate with a similar policy against exports from the EU, Rizal Affandi Lukman, a senior official at the ministry overseeing palm oil, said “all options are open to be taken by the Indonesian government.”
The latest move from the EU is likely to further aggravate a feud between the two trading partners. Tensions escalated earlier this year after the European Commission decided to place stricter limits on palm oil’s use in biofuels from June on concerns over deforestation.
The EU said in July that it intends to adopt the anti-subsidy duties, prompting the Indonesian government to threaten raising tariffs of the EU’s dairy products and halting purchases of Airbus SE airplanes. Another option is to file a complaint to the World Trade Organisation, Lukman, a deputy at the Coordinating Ministry of Economic Affairs, said.