Malaysia, Indonesia to Dispatch Envoys to EU Over Palm Oil Dispute

Pacific Money | Economy | Southeast Asia

The two nations hope to persuade European regulators that their native certification efforts conform to the EU’s rigorous new regulation on deforestation.

Malaysia, Indonesia to Dispatch Envoys to EU Over Palm Oil Dispute

A palm oil plantation in Kalimantan, Indonesia.

Credit: Depositphotos

Indonesia and Malaysia will quickly ship envoys to the European Union to debate the influence of the bloc’s lately handed deforestation regulation on their economically essential palm oil sectors.

The announcement was made after a gathering yesterday between Airlangga Hartarto, Indonesia’s coordinating minister for financial affairs, and Malaysia’s Commodities Minister Fadillah Yusof, wherein they mentioned “several pressing issues” associated to the palm oil trade, the Malaysian state media service Bernama reported.

“We agreed to continue to protect the palm oil sector by strengthening efforts and cooperation to overcome discrimination against the palm oil industry,” Airlangga instructed reporters. “The meeting (with Malaysia) agreed to conduct a joint mission to the EU to communicate and prevent unintended consequences of the regulation to the palm oil sector and seek possible collaborative approaches with interested parties.”

The announcement comes after the EU’s passage in December of a regulation that can “ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world.” The regulation, based on the EU, “sets strong mandatory due diligence rules for companies that want to place relevant products on the EU market or export them.”

While the regulation doesn’t apply solely to palm oil – it’s going to additionally apply to cattle, soy, espresso, cocoa, timber, and rubber, in addition to their numerous derivatives – it’s more likely to have an outsized influence on the sector, which has been strongly linked to the destruction of huge swathes of tropical rainforest.

Enjoying this text? Click right here to subscribe for full entry. Just $5 a month.

Indonesia and Malaysia, the world’s two largest producers of palm oil, have been harshly essential of the regulation, simply the newest European coverage that would influence their palm oil sectors. Both Malaysia and Indonesia additionally lobbied towards its passage. Kuala Lumpur even went as far as to threaten to halt palm oil exports to the EU, its third-largest purchaser of the product, altogether, although the 2 officers appeared to strike a extra diplomatic notice after yesterday’s assembly.

Airlangga mentioned the problem of an export boycott was not raised. “An export stoppage was not discussed … it was not an option,” he mentioned, based on Reuters. He and Fadillah mentioned that the envoys dispatched to the EU would try to persuade European officers and potential consumers that the nations’ sustainability certifications, often known as ISPO and MSPO, already met worldwide requirements and must be acknowledged in Europe.

“We always strive to comply with regulations on the palm oil industry, but they must be fair and understand the situation in both countries, where we try to help smallholders come out of poverty,” Fadillah mentioned, including that the envoys would “bring along representatives of smallholders to give our views.”

Indeed, the Roundtable on Sustainable Palm Oil, an trade watchdog group, this week acknowledged that smaller producers in Asia, Africa and Latin America – even those who harvest palm oil sustainably – would discover it laborious to adjust to the EU’s rigorous requirements and “may be forced to bear” the results of the regulation.

Source web site:

( No ratings yet )