"The EU and Indonesia opened "an exciting new chapter" in trade this week, with the IndonesiaEU Comprehensive Economic Partnership Agreement (IEU-CEPA) being signed in Bali following years of diplomatic wrangling. Palm oil exports have proven to be the most contentious issue during the talks. European officials insist its production drives deforestation and pollution, with the trade dispute spilling into the arena of diplomacy and chilling ties between Jakarta and Brussels."
"But although the new IEU-CEPA framework allows the EU to buy Indonesia's palm oil at zero tariffs, this deal alone is not enough to guarantee smooth exports to Europe. What's next after Indonesia's zero-tariffs deal with EU? From December this year, the EU will demand palm oil imports to comply with the European Union Deforestation Regulation (EUDR), a new legal framework aimed at fighting deforestation worldwide."
"And while major companies may be able to deliver the necessary export certificates, smallholders who control over 42% of Indonesia's palm oil plantations are likely to struggle, risking exclusion from supply chains. Without proper support, this imbalance could leave independent farmers marginalized and likely weakened in any land conflicts with big corporations. Small palm farmers likely to bear the brunt Eddy Martono, chairman of the Indonesian Palm Oil Association (GAPKI), praised the new IEU-CEPA deal wit"
An EU-Indonesia Comprehensive Economic Partnership Agreement will allow around 80% of Indonesia's exports to enter the EU tariff-free by 2027. Palm oil remained the most contentious issue because officials link its production to deforestation and pollution, straining diplomatic ties. The IEU-CEPA removes tariffs but the European Union Deforestation Regulation (EUDR) from December requires due diligence and documentation proving palm oil did not come from recently deforested land. Major companies may meet certification requirements, while smallholders controlling over 42% of plantations will likely struggle and risk exclusion from supply chains without targeted support.
Read at www.dw.com
Unable to calculate read time
Collection
[
|
...
]