The European Commission has announced that the European Union has brought a dispute at the World Trade Organization (WTO) against Indonesian export restrictions on nickel ore, which is used in production of stainless steel. The restrictions unfairly limit access of EU-based producers to the product in question, according to the EU.
In August this year, Indonesia’s Ministry of Energy and Mineral Resources said that as of January 2020 a full export prohibition of nickel ore will be effective.
“EU steel producers are under a lot of pressure and are suffering from the consequences of global overcapacity and unilateral trade restrictions. The export restrictions imposed by Indonesia put further jobs in the EU's steel industry at risk. We must now act to ensure that international trade rules are respected. That's why today we are taking a legal action in the WTO to get these measures removed as soon as possible,” said EU commissioner for trade Cecilia Malmström.
Furthermore, the European Steel Association (EUROFER) has welcomed that the European Commission has chosen to take action against Indonesia at the WTO because of its nickel ore export prohibition.
“What worries EUROFER - apart from being unfairly undercut by foreign players breaking international trade rules - is that the ‘integrated’ production route Indonesia uses to produce their stainless steel is up to seven times more CO2-intensive than the scrap-based electric arc furnace methods used in Europe”, said Axel Eggert, director general of EUROFER.