Indonesia to challenge ‘discriminative’ EU directive on palm oil

Palm oil, mainly produced in Indonesia and Malaysia, is used as feedstock for biofuels as well as being used in a wide variety of goods, ranging from food to soap. (File/Reuters)
Updated 31 January 2019

Indonesia to challenge ‘discriminative’ EU directive on palm oil

JAKARTA: Indonesia intends to challenge an EU directive on renewable energy at the World Trade Organization, arguing the plan to curb the use of crops that cause deforestation will unfairly target palm oil, a senior Indonesian official told Reuters.
The world’s top producer of the oil is also reviewing its relations with the European Union over the issue and urging other Southeast Asian nations to defer plans to upgrade EU ties, said Mahendra Siregar, special staff at the foreign ministry.
The EU directive, known as RED II, aims to stop the use of crops that cause deforestation in transportation fuel by 2030. Environmentalists blame a rapid expansion of Indonesian palm plantations for a massive clearance of forests that were home to endangered tigers, orang-utans and elephants.
A challenge from Indonesia on the policy would escalate its efforts to safeguard sales to its second-biggest palm oil market. The EU accounted for around 15 percent of Indonesia’s total palm exports of more than $15 billion last year.
Siregar said palm oil will be labelled a “high risk” crop — indicating its potential to result in deforestation — in an act attached to RED II due to be issued in early February. Indonesia will challenge both RED II and the act at the WTO’s dispute settlement body after it is issued, he said.
The WTO body can order members to remove any trade barriers if it finds that the policies breach free trade rules.
A government document outlining Indonesia’s stance on the EU policy and reviewed by Reuters said the method used to assess “Indirect Land Use Change” (ILUC), which aims to measure the risk of unintended carbon emissions, was not internationally recognized and not applicable in a tropical region.
“The criteria listed in ILUC gives advantages to local European Union commodities such as rapeseed oil,” it said.
Indonesia letter to ASEAN
Indonesia’s Foreign Minister Retno Marsudi said in a letter to the Association of Southeast Asian Nations (ASEAN) that developments in the EU hurting the interests of ASEAN palm oil-producing states have caused it to defer “elevation of ASEAN-EU dialogue relations to a strategic level.”
The Jan. 14 letter, also reviewed by Reuters, urged other members of ASEAN to follow suit.
“All Indonesia-EU relationships will be overviewed related to that discriminative policy by the EU,” Siregar said.
Asked about the letter, a spokesman at the ASEAN Secretariat in Jakarta said: “It is up to the member states to decide.”
Rafael de Bustamante Tello, first counsellor at the EU embassy in Jakarta, said: “The EU considers the RED II to be in line with the EU’s international commitments, including its WTO obligations.”
The European Commission will make sure “achievement of the EU’s renewable energy goals goes hand in hand with the fair and rules-based international trade regime that we so strongly defend,” he said.
De Bustamante also said that during an EU-ASEAN ministerial meeting in Brussels last week the two blocs decided to form a new joint working group to address issues related to palm oil.
In January last year, the WTO ruled in favor of Indonesia on several challenges to anti-dumping duties that the EU had imposed on its biodiesel exports. The duties had effectively stopped the trade, but exporters were able to resume shipments to Europe around April.
Palm oil, mainly produced in Indonesia and Malaysia, is used as feedstock for biofuels as well as being used in a wide variety of goods, ranging from food to soap.


Curtains close on Jaipur Literature Festival

Updated 23 min 35 sec ago

Curtains close on Jaipur Literature Festival

  • This year’s themes were current trends in politics, wider society, the economy, art, and literature

NEW DELHI: The 13th edition of the Jaipur Literature Festival (JLF) came to a close on Monday after registering a footfall of more than 400,000 visitors during the five-day event, which saw the participation of more than 500 speakers from 30 countries.

What started as a small event in the western Indian city of Jaipur in 2007 has gone on to become one of the most prestigious literary festivals in the world, so much so that the Diggi Palace, an expansive medieval structure which was used as the venue for the JLF every year, became overcrowded this year, forcing organizers to look for a new venue for 2021.

This year’s themes were current trends in politics, wider society, the economy, art, and literature.

With India witnessing continuous protests against new citizenship legislation introduced by the government, most of the political discussions revolved around the issue, with many drawing attention to the danger it posed to the constitution and the secular fabric of the country.

Changes taking place in the Arab world were also part of this year’s discourse with four Arab authors speaking at the JLF.