Information gathering on the Indonesian export ban and domestic processing requirement on nickel ore

Private stakeholders affected by the Indonesian export ban and domestic processing requirement on nickel ore, or by possible EU commercial policy measures in response.

The European Commission is seeking information and views regarding the EU's economic interests in accordance with Article 9 of Regulation (EU) No. 654/2014 of 15 May 2014 as amended by Regulation (EU) No 2021/167 of 10 February 2021. The Commission expects to receive input from private stakeholders affected by the Indonesian export ban and domestic processing requirement on nickel ore, and by possible EU commercial policy measures in response.

This information-gathering should provide the Commission with input to assist it in assessing the necessity and the parameters of possible commercial policy measures.

This is a procedural step that has to be taken within a clearly defined deadline, so as to preserve the EU’s rights and inform the decision-making process. It does not prejudge any specific EU action.

Context

On 30 November 2022, the WTO panel in the Indonesia - Raw Materials case (DS592) concluded that Indonesia’s export ban and domestic processing requirement on nickel ore are inconsistent with its obligations under the GATT 1994, and are not justified by any of the available exceptions. The ruling upheld all of the EU’s claims in this dispute.

Given that on 8 December 2022, Indonesia submitted an appeal notice to the WTO (an appeal 'into the void' i.e. to the non-functioning Appellate Body), de facto blocking the final and binding resolution of the dispute, the Commission started exploring the option of enforcing the EU's rights and adopting countermeasures as provided for in Article 4 of the amended Enforcement Regulation No. 654/2014.

Regulation (EU) No 654/2014 of 15 May 2014 concerning the exercise of the EU's rights for the application and enforcement of international trade rules as amended by Regulation (EU) No 2021/167 provides the legal basis to address blockages in the WTO dispute settlement system and to prepare the EU for such situations where important economic interests in the effective enforcement of rules would be undermined.

Where action is necessary to safeguard the EU's interests in such cases, the EU may take appropriate commercial policy measures in response, on the basis of objective criteria.

The Commission has estimated the direct effect of the nullification and impairment to be around €350 million, while the indirect impact would be up to four times higher. The Commission has at this stage identified steel and stainless steel products as possible products for countermeasures.

In assessing the necessity and the parameters of possible commercial policy measures, the Commission is seeking input from private stakeholders affected by the Indonesian export ban and domestic processing requirement on nickel ore, or by possible EU commercial policy measures, as outlined above, on the products identified in the enclosed document.