Indonesian Nickel Ban

European Union (EU) appeals Indonesian nickel export ban at World Trade Organization (WTO). Nickel ore is a key commodity for bulk shipping and mainly used in steel production. According to European Union (EU) commissioner for trade Cecilia Malstrom, Indonesian nickel export restrictions put some jobs in the EU’s steel industry at risk. Indonesian export restrictions and bans will be renewed from January 2020. Particularly, Indonesian export restrictions affects supramax bulk carriers that are trading in southeast Asia. Indonesia wants to be a processing hub and export value added products instead of merely exporting raw materials. Nickel ore liquefaction on bulk carriers has also led to several lethal maritime accidents. European Union (EU)’s move at the World Trade Organization (WTO) is just part of a wider challenge of Indonesian rules that also include domestic processing requirements. European Union (EU) sees Indonesian decisions as hidden subsidies for local producers that go against World Trade Organization (WTO) rules. European Union (EU)’s appeal Indonesian nickel export ban is just the first step. Next step could be a long process that begins with mutual consultations. European Union (EU) may request that the World Trade Organization (WTO) set up a panel to rule on the issue.