Indonesia and Malaysia send joint letter to EU objecting measures on palm oil

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Over the weekend, Indonesian President Joko Widodo and Malaysian Prime Minister Mahatir Mohamad have signed and sent a joint letter to the EU in objection to its plans to gradually halting the usage of palm oil.

Indonesia’s coordinating minister for Maritime Affairs, Luhut Pandjaitan announced the sending although was not ready to reveal the contents of the same.

Both Indonesia and Malaysia are the world’s top producers of the vegetable oil and have previously threatened the EU via a WTO (World Trade Organization) challenge.

The two world's largest palm oil producers are also disappointed on the formation of EU self-proclaimed certification system on palm oil product which was mentioned in the resolution instead of using the existing ones set up by Indonesia and Malaysia.

Much of the issue seems to stem from deforestation and its link to illegal logging and palm oil production, which has prompted Norway and France to begin a clamp down ahead of Brussels.

Norway committed in 2016 to making sure the supply chain in its public procurement is deforestation-free and included the plan in its budget last autumn. 

Malaysia quickly warned it would affect its trade relations with the European Free Trade Association.

France announced in November that it will stop imports of palm oil, soy, beef and other products linked to deforestation and unsustainable agriculture by 2030.

Malaysia again responded, with prime minister Mahathir Mohamad telling president Emmanuel Macron that the government would consider restricting imports of French products.



Source: Smart Trend Team