AreaIndonesia
Commodity GroupOilseeds, oils and meals
CommodityPalm oil
Date01/07/2017
Policy CategoryTrade
Policy InstrumentBilateral cooperation
DescriptionAnnounced that Indonesia and Malaysia would consider a joint challenge at WTO level of any measure the EU might take to restrict palm oil imports on sustainability grounds.
NotesThe Governments of Malaysia and Indonesia informed that they would consider challenging at WTO level possible measures by the European Union to restrict palm oil imports on sustainability grounds. The announcement is related to a recent resolution by the European Parliament that (i) calls for mandatory certification of all Europe-bound palm oil, and (ii) recommends phasing-out the use of biofuels made from palm oil and other vegetable oils purportedly produced in an unsustainable way (see MPPU June17 and above item FRANCE palm oil use). Meanwhile, the two countries agreed to carry out a joint mission to Europe to engage with relevant parties and stakeholders, and informed that they were ready to work with trade partners in addressing their concerns over sustainability. The two governments will coordinate their actions under the Council of Palm Oil Producing Countries (CPOPC), an initiative set up by Malaysia and Indonesia to stabilize prices through concerted actions on production and stocks.
