Indonesia had requested in 2023 that a WTO dispute settlement panel examine the countervailing and anti-dumping measures Brussels imposed on imports of its stainless-steel cold-rolled flat products.

The panel concluded that the European Commission “has acted inconsistently with certain provisions of the SCM Agreement”, referring to the WTO accord setting rules concerning government subsidies and measures other countries can take in response.

It found fault in how the EU calculated subsidies.

“We recommend that the European Union bring its measures into conformity with its obligations under the SCM Agreement,” it said.

Following that determination the WTO panel declined to rule on a number of points sought by Indonesia, or rejected its claims.

Last week the EU said it would appeal a WTO ruling that backed Jakarta’s complaints about EU countervailing duties on Indonesian biodiesel imports.

The WTO’s appeal body remains paralysed due to a US refusal to appoint new judges.