EU Impleads in US Case

WTO over Compliance, Indonesia Arbitration Proceedings on Clove Cigarettes

The EU filed a formal complaint (DS481) against Indonesia at the WTO last week, questioning the Southeast Asian country’s approach in its dispute with the US over a clove cigarettes import ban (DS406). The new case, filed on Friday, highlights long-running questions over the adjudication of disputes – particularly with regard to retaliation and third party participation – at the global trade arbiter.

In its submission last week – the EU is challenging Indonesia’s decision to request WTO-authorised retaliation against the US without resorting first to a compliance panel, which would judge whether Washington had indeed brought its measures in line with international trade rules.

Brussels also says that it has been “unlawfully” excluded by Jakarta in the ongoing compliance and arbitration panel process, despite having been a third party in the earlier stages.