Eu Ban Palm Oil Indonesia

The two asean member countries and the european union have agreed to form a working group on palm oil.

Eu ban palm oil indonesia. The eu issued a ruling in march that would exclude most palm oil from being used in green transportation fuel by 2030 due to the damage it causes to the environment. A european member of parliament says the bloc isn t concerned about threats by indonesia and malaysia to file a trade complaint over an eu policy to phase out palm oil based biofuels by 2030. Indonesia says the working framework is doubly important. The government is preparing to take its latest dispute with the european union on crude palm oil cpo to the world trade organization wto in a bid to settle to issue.

India is both. Jakarta kuala lumpur indonesia and malaysia which together produce nearly 90 per cent of the world s palm oil are reeling from a decision by the european parliament last week to ban the use. An eu palm oil ban designed to protect tropical forests might instead harm the livelihoods of farmers and increase forest loss if countries such as indonesia and malaysia switch to markets with. It accounts for about 10 to 15 of global palm oil demand consuming 7 5 million tons of palm oil a year.

The commission concluded that the cultivation of palm oil mostly undertaken in indonesia and. There is a trade war shaping up between asean s palm oil producing nations and the eu. Yet indonesia which accounted for 56 of global palm oil supply in 2018 and malaysia which contributed 28 claim the eu s real concern is protecting its own rapeseed and sunflower oils. The malaysian palm oil association mpoa is lobbying the government to halt trade deal negotiations with.

Indonesia the world s biggest producer of palm oil will not accept an eu plan to curb the use of crops that cause deforestation and argued that its higher production yield made it better placed. The eu is malaysia s and indonesia s second largest palm oil buyer.