EUROPEAN UNION AND CERTAIN MEMBER STATES - CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS REQUEST TO JOIN CONSULTATIONS
Document: Communication from Argentina
Date: 1 February 2021
Document codes: WT/DS600/3
Complainant: Malaysia
Respondent: EU, France, Lithuania
Third parties: Argentina, Australia, Brazil, Canada, China, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Japan, South Korea, Norway, Russia, Saudi Arabia, Singapore, Thailand, Turkey, Ukraine, United Kingdom, U.S.
Dispute stage: Panel
Agreements cited: Art. I:1, III:2, III:4, X:3(a), XI:1  GATT 1994Art. 3, 5  Subsidies and Countervailing Measures (SCM)Art. 2.1, 2.2, 2.4, 2.5, 2.8, 2.9, 5.1.1, 5.1.2, 5.2, 5.6, 5.8, 12.1, 12.3  Technical Barriers to Trade (TBT)

EUROPEAN UNION AND CERTAIN MEMBER STATES - CERTAIN MEASURES CONCERNING
PALM OIL AND OIL PALM CROP-BASED BIOFUELS
REQUEST TO JOIN CONSULTATIONS
Communication from Argentina
The following communication, dated 2 9 January 2021, from the delegation of Argentina to the
delegations of the European Union, France and Lithuania and the delegation of Malaysia, is circulated
to the Dispute Settlement Body in accordance with Article 4.11 of the DSU.

Pursuant to Article 4.11 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes (DSU), my authorities have instructed me to request the European Union, in light of
Argentina’s substantial trade interest in the matter, to join the consultations that were requested by
Malaysia in its communication of 1 9 January 2021 entitled European Union and certain Member
States – Certain measures concerning palm oil and oil palm crop-based biofuels ().

Since 2 018, Argentina has been the main source of biodiesel exports to the European Union
(41.5% of that market's total imports in 2018) and therefore considers that it has a substantial trade
interest in this dispute . Argentina also has a systemic interest in the proper interpretation and
application of the TBT Agreement, particularly insofar as this can affect trade in agricultural products
and products that are sources of renewable energy.

Argentina has one of the most important industrial oilseed complexes in the world, namely the Gran
Rosario oilseed complex, which is the largest in the world in terms of geographical concentration.1

The Argentine companies that export diesel follow sustainability criteria and are certified under
schemes approved by the European Union in its RED I and II Renewable Energy Sources Directives,
such as ISCC and 2BS.

Malaysia has clearly identified the measures at issue in the above-mentioned request for
consultations. These include certain measures imposed by the European Union and the EU Member
States that appear to affect mainly palm oil and oil palm crop-based biofuels. However, the measures
identified by Malaysia adopted by certain Member States, such as France, appear to have a direct
impact on exports of Argentine biodiesel based on soybean oil. In particular, the recent enaction of
the 2021 budget law appears to discriminate de jure against soybean oil and biodiesel2 in amending
Article 266 quindecies of the French Customs Code.

In view of this substantial trade interest, and mindful of the rights and obligations of WTO Members
under Article 4.11 of the DSU, Argentina looks forward to receiving your reply, together with details
regarding the date and venue of the consultations.
Rosario.
2 Article 58 of the 2021 Finance Law (No. 2020-1721 of 29 December 2020). Available at:
https://www.legifrance.gouv.fr/jorf/id/JORFARTI000042753606.