Measuring WTO Approaches in Resolving Palm Oil and Biofuel Trade Disputes from Indonesia

Palm oil is considered the most consumed edible oil in the world. An estimated 75% of overall palm oil production is destined for export with the total export value amounting to USD 28.2 billion in 2016. Currently, more research is needed to understand the associations between palm oil trade and production, and its environmental, social, and economic development aspects in accordance with the UN’s Sustainable Development Goals (SDGs). This research explores the possible associations between the key SDG indicators and palm oil trade and production. Statistical tools are employed in order to analyze the relationships between the key SDG indicators and palm oil trade and production. Random effects regression models were developed to identify the impacts of key SDG indicators on palm oil trade and production. The results showed that a reduction in the number of undernourished people significantly enhances the growth of palm oil imports, exports and production. An increase in agricultural employment significantly increases palm oil imports, exports, and production. Furthermore, it was found that temperature has a significant negative impact on palm oil trade and production. Recommendations for policy development toward sustainable palm oil trade in moving toward achievement of the SDGs are addressed to ensure a future for the sustainable growth of palm oil trade and production.

With high consumption and low production rates, Pakistan appears as one of the main palm oil importers in the world. Among all vegetable oils, palm oil price appears to be the lowest, thus dominating the vegetable oil import market. Indonesia and Malaysia are the two main exporters, in which Pakistan alternately imports palm oil. Within such conditions, this study aims to analyze the sustainability of Indonesia Pakistan supply chain by estimating (i) the influencing factors of Pakistan palm oil import volume from Indonesia, (ii) the price co-integration in the Indonesian-Pakistan palm oil supply chain, and (iii) the adjustments of the short run dynamics towards the long run equilibrium. Using monthly data from 2010 to 2016, the sustainability was analyzed with Auto Regressive Distributed Lag model and Vector Error Correction Model. The results show Pakistan palm oil import volume is significantly influenced by the price of Pakistan’s palm oil import, trade balance and soybean oil price. The lower the palm oil import price, the higher the volume palm oil imported to Pakistan. The import price is co-integrated with all prices along the Indonesia Pakistan supply chain but no error correction towards long run equilibrium, which is partly reflecting impact of Pakistan Government interventions in palm oil trade. Based on these results, it can be concluded that price is the most influencing factor of the Pakistan palm oil import, thus Indonesia Pakistan supply chain could be sustained if the Indonesian palm oil selling price remains competitive. Therefore, Indonesian producers need to increase their productivity and reduce their production costs in all stages of the supply chain, including those among the oil palm smallholders. Keywords: palm oil, supply chain, autoregressive distributed lag, error correction

Malaysia is now the international’s second-top manufacturer of palm oil, with its huge and developing palm oil enterprise, and strong international call for palm oil. Malaysia has the capability to play a first-rate position in international markets. This paper aim to examine the palm oil rate towards palm oil export, import and trade charge withinside the financial system to peer the connection between those variables. Movements in palm oil costs provide crucial alerts to imports, exports, and trade fees in Malaysia’s monetary interest. Thus, to recognize import, export and trade charge elements that can have an effect on the palm oil rate is essential to the enterprise gamers for the sustainability of palm oil activities. Thus, this study investigates the relative significance of imports and exports interest at the motion of palm oil fees in Malaysia’s financial system. By using a regressive version on palm oil fee annual statistics from 2009 to 2020, the findings display that palm oil fee is extra dominant in affecting palm oil import. However, the findings on this examine additionally determined that palm oil fees have an extensively poor relationship with palm oil export and trade charge. This study is crucial because it will provide effect and advantage the monetary and environmental destiny withinside the lengthy term.

Vegetable oils, used cooking oils (UCO), pine, tallow and animal oils were the main feedstocks to produce biodiesel in EU in 2011-2020. Rapeseed, palm oil, soya and sunflower were the four vegetable oils feedstocks and contributed to 67- 87 per cent of the total biodiesel usage. Although the amounts of biodiesel usage increased over time, the share of biodiesel from these four feedstocks relative to the total amount, decreased from 87 per cent in 2012 to 78 per cent in 2020. This loss was filled up by, principally, UCO, tallows, animal waste oils and greases; their amounts used increased by 2.5 times over the period. They will continue to be used in larger quantities in 2021-2030 and will cause the share of palm, soya and sunflower oils as biofuel feedstocks to decrease. It is anticipated that vegetable oils will still be needed as biofuel feedstock in 2021-2030. With a significantly large share of 78 per cent of the total amount of biodiesel used in 2020, it will take some time before they can be replaced completely by UCO, tallows/animal waste oils and second to third generation biofuels. The call to determine the sustainability status of UCO more thoroughly in the future will also be expected to put some brakes on the accelerated use of UCO to replace these crop-based feedstocks. The price of feedstock was of secondary importance when choosing the feedstock in 2012-2020. Rapeseed oil was the most expensive vegetable feedstock and yet it was the main feedstock used. This showed that other factors e.g., feedstock sustainability status as stipulated in the Renewable Energy Directive (RED) and local availability were also important; the European Union (EU)being the world’s largest rapeseed oil producer. Besides, RED also stressed the importance of energy security and to provide jobs and economic development of the local people when executing the RE programme. As such, it is foreseen that rapeseed oil will remain the dominant feedstock. However, vegetable oils have competing uses for food, feed, oleochemicals and biofuels. The ability to use rapeseed as the primary feedstock in huge amounts indefinitely has limitations. As a resource, rapeseed ranked third in quantity produced globally. Palm oil, followed by soya had the largest amounts of resource available for use in the world. Sunflower had the lowest resource availability among the four vegetable oils. As such, overstretching the use of rapeseed and sunflower for biofuel can have other dire consequences such as supply shortages and price increases. Rapeseed alone cannot meet the total demand of EU’s biodiesel needs. The study showed that even if the entire production of rapeseed oil from locally grown crop in EU was used for biodiesel production, it could only meet 58 per cent of its biodiesel demand in 2020. Since rapeseed feedstock cannot meet the total demand of biodiesel in EU, it is anticipated that in 2021-2030, it will have to be supplemented with other feedstocks particularly palm and soya oils. Under the Delegated Regulation, palm oil is classified as an unsustainable biofuel feedstock with high ILUC-risk. Incidentally, it is the only feedstock classified as such. It is, thus, envisaged that soya will be used in larger and larger amounts at the expense of palm oil. Under the Delegated Regulation the use of palm oil will be restricted starting in 2020 and continue until its use is phased out completely by 2030 at the latest. However, the tide may still change in favour of palm oil if its trade discrimination by EU can be stopped by World Trade Organisation where a trade dispute is ongoing currently. Keywords: Biodiesel, crop-based biofuels, vegetable oils, used cooking oil, resource availability, palm oil, rapeseed.

The WTO Appellate Body Repertory of Reports and Awards is intended to serve first and foremost as a source of information for those interested in the field of international trade law. It presents a systematic compilation of Appellate Body jurisprudence over the past 15 years. The Repertory was initially developed as an internal research tool to assist the Appellate Body Secretariat in carrying out its duty to provide legal advice to Appellate Body Members. The Secretariat subsequently decided to make the Repertory available to the public to serve as a practical tool for officials from WTO Members, particularly for those that may not have the resources to prepare similar compendiums in-house. We hope that the Repertory will also assist academics, students, private practitioners, and others with interest in international trade law and dispute settlement practice who need to consult and access precise information about the evolution of, and most recent developments in, Appellate Body jurisprudence.

This paper aims to assess the palm oil trade in the world market, factors affecting Indonesia's palm oil industry and trade, and how it can contribute to and benefit the sustainable agriculture development. Palm oil and palm kernel oil make up a third of total world production of oils and fats. During the last decade, the stock-production-import-export of palm oil in the world trade has increased to more than double in volumes and values. Other than being main producers, Indonesia and Malaysia are the two major exporters of palm oil in the world market with total shares of more than 80 percent of the total world export. Coupled with increasing demand for cooking oils, growing demand for palm oil derivatives-products has created a new challenge and opportunity for Indonesia to increase its competitiveness in the world market. Indonesia has and could continue to seize the opportunity to meet the increasing world market demand provided it can increase the ability to translate the new world market demand and adjust it to its domestic production facilities. The Indonesian policies of palm oil development must be directed, implemented and enforced with the focus to the downstream industries. The world concern of environmental degradation has triggered an RSPO forum and Indonesia responded through the ISPO to support the sustainable development. As the main producer, it is only fitting if Indonesia becomes and sets a price reference for sustainable palm oil traded in the world market.

This paper aims to assess the palm oil trade in the world market, factors affecting Indonesia’s palm oil industry and trade, and how it can contribute to and benefit the sustainable agriculture development. Palm oil and palm kernel oil make up a third of total world production of oils and fats. During the last decade, the stock-production-import-export of palm oil in the world trade has increased to more than double in volumes and values. Other than being main producers, Indonesia and Malaysia are the two major exporters of palm oil in the world market with total shares of more than 80 percent of the total world export. Coupled with increasing demand for cooking oils, growing demand for palm oil derivatives-products has created a new challenge and opportunity for Indonesia to increase its competitiveness in the world market. Indonesia has and could continue to seize the opportunity to meet the increasing world market demand provided it can increase the ability to translate the new world market demand and adjust it to its domestic production facilities. The Indonesian policies of palm oil development must be directed, implemented and enforced with the focus to the downstream industries. The world concern of environmental degradation has triggered an RSPO forum and Indonesia responded through the ISPO to support the sustainable development. As the main producer, it is only fitting if Indonesia becomes and sets a price reference for sustainable palm oil traded in the world market.

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Indonesia has been the largest palm-oil producer in the world since 2006. The country’s palm-oil products are exported globally, including to member states of the European Union. In recent years, European countries have implemented increasingly stringent regulations on palm-oil imports, including from Indonesia, through policies such as the Renewable Energy Directive (RED) II. This study qualitatively analyzes Indonesia’s responses to these policies. We collected data using in-depth interviews and focus-group discussions with government policymakers, activists from nongovernmental organizations, and oil-palm smallholders and entrepreneurs in Indonesia. We demonstrate that the European Union policy has experienced a shift in recent years which has made it more difficult for Indonesian palm-oil products to enter European markets. The Indonesian government views these policies as an environmental issue, a form of trade war, and a challenge to the sovereignty and dignity of the nation. The government’s responses have included improvements to cultivation and business practices, demands for broader and more inclusive policies, and “resistance,” for example, by referring the case to the World Trade Organization.

This research aims to analyse 1) the interest of the European Union on Renewable Energy Directive; 2) the protection forms of the European Union on Renewable Energy Directive toward Indonesian Palm Oil; 3) the transformation of Indonesia palm oil managerial after of European Union Renewable Energy Directive. The result of this research shows that there is two interest of the European Union in implementing the policy of Renewable Energy Directive, that is in environment protection with simultaneous criteria and palm oil protection in European unions. It is found that trading protection towards Indonesian palm oil is a form of green protectionism. This protection then implements non-tariff protection as a form of trade barrier. It impacts palm oil exports from Indonesia to the European Union. This protection influenced the policy transformation of palm oil management in Indonesia. The policies are RSPO, ISPO, Presidential Directive on Primary Forest and Peatland, and Presidential Directive on Moratorium and Forest Land Allocation. This research proves that palm oil production in Indonesia changed after the implementation of the Renewable Energy Directive in the European Union. This improvement of palm oil production proves that the policy is influenced by the market drives and not an only environmental issue.

Oil palm is a west African crop. The trade in palm oil has emerged during the industrial revolution led by Britain, this palm oil was used to lubricate machines. In 1960s, Nigeria was the largest producer of palm oil globally, which accounted for the 43% of palm oil production entirely, but then the entire production declined due to some factors that slowed the palm oil production growth. While in Malaysia, oil palm production serves as the leading and contributing sector to its economy; and it also achieved recognition globally. Palm oil has made a huge contribution to Malaysia economic growth by providing employment, improving infrastructure, alleviating poverty, and generating income for workers and government. This paper objective is to explore the Nigerian decline and Malaysian sustainability on palm oil. It is a qualitative paper, it used primary and secondary method to collect data. The primary method used open-ended interview to collect data, while the secondary method used documents such as: books, journal, conference papers to collect data; and it employed inductive thematic analysis for analysing the interview data collected. It used ATLAS.ti 8 software to help analyse the data. The finding is Nigerian decline which includes: oil boom in 1970s and decline in agriculture, civil war, and traditional palm oil production; and Malaysian sustainability on palm oil includes: environmental consciousness, economic escalation, and social commitment. In conclusion, Nigeria has to learn from Malaysian sustainability to recover its production.

The rise of the legitimate trade in palm oil in the nineteenth century is often described as following (or due to) a decline in the overseas slave trade. In fact in the most important oil producing region, the Bight of Biafra, the palm oil trade expanded well in advance of any decline in the slave trade and the suppression of the slave trade occasioned no marked increase in the rate of palm oil export growth. It would appear that the direct and indirect effects of the slave trade in this region had created economic conditions which enabled its small farmers to respond so rapidly to external demand for palm oil. The failure to understand the relationship between the slave and the palm oil trades is a result of misunderstanding the relationship between these oil producers and the coastal middlemen.

The rise of the legitimate trade in palm oil in the nineteenth century is often described as following (or due to) a decline in the overseas slave trade. In fact in the most important oil producing region, the Bight of Biafra, the palm oil trade expanded well in advance of any decline in the slave trade and the suppression of the slave trade occasioned no marked increase in the rate of palm oil export growth. It would appear that the direct and indirect effects of the slave trade in this region had created economic conditions which enabled its small farmers to respond so rapidly to external demand for palm oil. The failure to understand the relationship between the slave and the palm oil trades is a result of misunderstanding the relationship between these oil producers and the coastal middlemen.

The aim of the research is to determine the role of panels and the Appellate Body in resolving disputes at the WTO. The research method used in this paper is a research method with a normative juridical approach with descriptive-analytical research specifications. The dispute resolution mechanism in the WTO involves five main stages. The first stage is consultation, where the disputing countries try to resolve the problem directly. The second stage includes settlement efforts through good services, conciliation and mediation. The third stage is the establishment of a panel, where independent experts examine the dispute and prepare a report. The fourth stage is the appeals process, where the appeals body reviews the panel's decision if there is an appeal. The final stage is the implementation of the decisions and recommendations issued. The panel is formed within approximately 90 days of the application, consisting of independent experts selected by the DSB. The panel works based on the Terms of Reference (ToR) which regulate the procedures for resolving disputes and is tasked with carrying out an objective assessment of the problems faced, assisting the DSB in making recommendations. If consultations fail, the aggrieved country can request the formation of a panel from the Dispute Settlement Body (DSB). If the panel fails to reach a solution, they must submit a written report to the DSB. This process ensures dispute resolution within a certain time period to ensure legal certainty. In addition, there is an appeal mechanism through the Appellate Body which consists of seven international trade law experts. The appeal process must be completed within 90 days, and the Appellate Body report is final and must be adopted by the DSB.

The Renewable Energy Directive (RED) is a vehicle for environmental NGOs concerned about biodiversity destruction in Indonesia, for European biodiesel producers to admit new competitors, and for European Union (EU) interests to build a secure and sustainable economy for their region. In other words, it is a manifestation of the di?erent interests of many agencies that share grace and favour over palm oil development in the EU. By observing the RED as the vehicle and the EU system of governance as its course, this paper records the interactions between those agencies in shaping the policy. The observations allow for agencies contributions to the images of palm oil. It depicts that biodiversity destruction is the basis for the sustainability criteria in the RED but it was not the only cause of the slowing down in the pace of the Indonesian palm oil market penetration in the region. To some extent, the RED is considered a trade barrier for Indonesian palm oil. However, the RED is an incentive to strengthen the image of the palm oil industry in a more constructive way and ensure the longevity of the industry.