In Indonesia, DW reported that the European Union and Indonesia opened a new chapter in trade, with the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) being signed in Bali.
The report noted that palm oil exports have proven to be the most contentious issue during the talks. EU officials point out that producing palm oil is a major driver of deforestation and pollution.
Brussels and Jakarta now hope to see the accord go into effect by 2027, allowing around 80% of Indonesia’s exports to enter the EU tariff-free, the report added.
Starting in December, the European Union will demand palm oil imports to comply with the bloc’s Deforestation Regulation (EUDR), a new legal framework aimed at fighting deforestation worldwide, the report said.
Exporters, including those in Indonesia, will be required to carry out due diligence and provide documentation proving that their palm oil did not come from recently deforested areas, it added.
Though major companies may be able to deliver the necessary export certificates, small producers — who control over 42% of Indonesia’s palm oil plantations — are likely to struggle, risking exclusion from supply chains.
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Tags: Indonesia, Palm oil
Category: Food & Agriculture
