{"id":26230,"date":"2023-02-15T16:25:36","date_gmt":"2023-02-15T09:25:36","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=22705"},"modified":"2023-02-15T16:25:36","modified_gmt":"2023-02-15T09:25:36","slug":"trading-partners-view-eu-new-law-as-protectionism","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2023\/02\/15\/trading-partners-view-eu-new-law-as-protectionism\/","title":{"rendered":"Trading Partners View EU New Law As Protectionism"},"content":{"rendered":"<p>The world\u2019s two largest palm oil producers, Indonesia and Malaysia, are leading international criticism of a planned EU deforestation law they say is protectionist and discriminatory.<!--more--><\/p>\n<p><a href=\"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2022\/07\/welfare_moderndiplomacy.eu_.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21615\" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2022\/07\/welfare_moderndiplomacy.eu_.jpg?resize=812%2C444&#038;ssl=1\" alt=\"\" width=\"812\" height=\"444\" data-id=\"21615\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/welfare_moderndiplomacy.eu_.jpg?w=812&amp;ssl=1 812w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/welfare_moderndiplomacy.eu_.jpg?resize=300%2C164&amp;ssl=1 300w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/welfare_moderndiplomacy.eu_.jpg?resize=768%2C420&amp;ssl=1 768w\" sizes=\"auto, (max-width: 812px) 100vw, 812px\" \/><\/a><\/p>\n<p>The legislation, preliminarily agreed between\u00a0MEPs and EU and set to be approved by the European parliament at a plenary vote in late March, is the first in the world to ban imports of products linked to deforestation, including cattle, cocoa, coffee, palm oil, soya, wood and rubber.<\/p>\n<p>Kuala Lumpur and Jakarta have asserted that the legislative process lacked proper consultation, with Malaysian Deputy Prime Minister Fadillah Yusof calling it \u201ca deliberate act by Europe to block market access\u201d and threatening to ban palm oil exports to the EU.<\/p>\n<p>Campaigners expected more strong language to come out of Jakarta when Yusof meets Indonesia\u2019s coordinating minister of economic affairs, Airlangga Hartarto.<\/p>\n<p>The two countries have already railed against the EU phasing out palm oil as a renewable biofuel, a move Malaysia deemed \u201ccrop apartheid\u201d. It also adds to tensions between the EU and Indonesia over Jakarta\u2019s nickel ore export ban, about which they are in dispute at the World Trade Organization.<\/p>\n<p><strong>What is the law?<\/strong><\/p>\n<p>Proposed in 2021, the law requires companies to provide a certificate to prove their goods have not been produced on land that was deforested after the end of 2020.<\/p>\n<p>In what Michael Rice, a lawyer at not-for-profit group ClientEarth, calls \u201ca gold standard for protecting forests\u201d, the law also requires importers to collect precise geo-location information on the growers of the relevant commodities.<\/p>\n<p>Environmental experts hope the EU measure will become a global benchmark. Voluntary pledges by USA and European importers to eliminate palm oil linked to deforestation, destruction of peatlands and labour exploitation from their supply chains have spread to other players in China and South Korea.<\/p>\n<p><strong>What has the response\u00a0been?<\/strong><\/p>\n<p>The law is particularly galling for the two South-East Asian countries. Under heavy scrutiny from non-governmental organisations over the past few decades, both have increased the traceability of their palm oil and reduced deforestation.<\/p>\n<p>In Indonesia, the amount of forest converted to oil palm plantations in 2020 was more than 90 percent lower than the peak in 2012 but production volumes have jumped 72 percent, according to Helen Bellfield, deputy director of supply chain transparency group Trase.<\/p>\n<p>Compared to the soybean and beef industries in Latin America, \u201cthe Indonesian palm oil sector is much more transparent and at a high level of commitment\u201d, she said.<\/p>\n<p>Brazil, Argentina, Ghana, Nigeria and Canada \u2014 all exporters of agricultural commodities \u2014 also regard Brussels\u2019 move as a protectionist measure. Coming shortly after the EU introduced the world\u2019s first carbon border tax, designed to put a levy on the emissions of imports into the bloc, some analysts in Brussels are concerned that the deforestation law could be viewed as a trade barrier and discriminatory to foreign suppliers, therefore contravening WTO rules.<\/p>\n<p>In the US, some politicians have signalled that the EU legislation could accelerate negotiations on the US\u2019s own forest act, not least because of fears that the US will become a dumping ground for goods that cannot be exported to the EU.<\/p>\n<p><strong>What are the points of contention?<\/strong><\/p>\n<p>Businesses will have to monitor potential deforestation depending on which level of risk their region is in: high, standard or low, according to a benchmarking system developed by the European Commission.<\/p>\n<p>\u201cExtended traceability requirements, especially from low-risk countries, will be a burden for the value chain,\u201d said Jori Ringman, director-general of the Confederation of European Paper Industries. \u201cIt may also be difficult for public authorities to process this amount of information.\u201d<\/p>\n<p>EU countries will also have to increase the number of customs officers. Christophe Hansen, lead negotiator for the parliament on the law, said that \u201cfor high risk countries\u2009.\u2009.\u2009.\u20099 percent of the goods and companies need to be checked so this is a huge amount of additional work\u201d.<\/p>\n<p>Agricultural exporters, especially developing countries, are pushing back on what they say are \u201cone-sided\u201d elements of the law, including the EU\u2019s definitions of deforestation and forest degradation. The bloc has used the UN\u2019s Food and Agricultural Organization definition, which is more stringent than that of most governments.<\/p>\n<p>Exporters are also concerned about the benchmarking system and the still to be worked out process that will assess countries\u2019 level of deforestation risk.<\/p>\n<p>Companies will have to present precise information about where their products have been grown. Indonesia and Malaysia claim that the legislation unfairly affects millions of their smallholders, who are unable to adhere to the onerous traceability and data requirements.<\/p>\n<p>Hansen acknowledged the challenges and said that the parliament had pushed for a clause that obliges the commission to set up partnerships with other countries to support smallholders to comply with the law.<\/p>\n<p>If the cost of compliance is too high producers would \u201ceventually be tempted to swap the destination of their product and we know that other customers in a globalised market are less ambitious than we are,\u201d he added.<\/p>\n<p>The absence of protections for the rights of indigenous people in the law is another source of contention among some campaigners. \u201cThe world\u2019s forests cannot be preserved when the lands [of local and indigenous] communities are grabbed and land tenure conflicts continue,\u201d said Client Earth\u2019s Rice.<\/p>\n<p><strong>What happens next?<\/strong><\/p>\n<p>The regulation will only come into force 18 months after it is formally ratified, so campaigners expect implementation in late 2024.<\/p>\n<p>During this period there will be talks between EU and exporter governments over the design of the risk benchmarking system. \u201cBetter communication and clarity that high risk countries are not banned from exporting to the EU,\u201d may ease tensions, but imports from these regions will have increased level of checks, said Bellfield.<\/p>\n<p>The law is subject to review after one year to see if \u201cother wooded land\u201d, like savannah such as the Cerrado in Brazil, should be included.<\/p>\n<p>Joko Supriyono, Chairman of the Indonesian Palm Oil Association (GAPKI), said he was still in discussions \u201cwith the government of Indonesia to determine steps to be taken\u201d.\u00a0(*)<\/p>\n<p>Source: <em><a href=\"https:\/\/www.ft.com\/content\/c2f2eea9-1eb5-478f-ac53-5666776c0a35\">ft.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world\u2019s two largest palm oil producers, Indonesia and Malaysia, are leading international criticism of a planned EU deforestation law they say is protectionist and discriminatory.<\/p>\n","protected":false},"author":1,"featured_media":21615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-26230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - 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The EU indeed --\u2026","rel":"","context":"In &quot;Publication&quot;","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_asiatimes.com_.jpg?fit=990%2C568&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_asiatimes.com_.jpg?fit=990%2C568&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_asiatimes.com_.jpg?fit=990%2C568&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_asiatimes.com_.jpg?fit=990%2C568&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22598,"url":"https:\/\/gapki.id\/en\/news\/2023\/01\/26\/gapki-ri-not-worried-over-eu-other-markets-up-for-grabs\/","url_meta":{"origin":26230,"position":1},"title":"GAPKI: RI Not Worried Over EU, Other Markets Up For Grabs","author":"admin","date":"January 26, 2023","format":false,"excerpt":"JAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) has stated that they are not worried over the new deforestation-free law adopted by the European Union (EU) recently. The new EU regulation will ban the imports of products, including the palm oil, which are considered causing deforestation.\u00a0\u00a0 \u201cThe global market of\u2026","rel":"","context":"In &quot;Publication&quot;","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":26307,"url":"https:\/\/gapki.id\/en\/news\/2023\/05\/12\/eu-parliament-approves-deforestation-law\/","url_meta":{"origin":26230,"position":2},"title":"EU Parliament Approves Deforestation Law","author":"admin","date":"May 12, 2023","format":false,"excerpt":"BRUSSELS - The European Parliament approved a landmark deforestation law on Wednesday, 19 April 2023, to ban imports into the European Union (EU) of coffee, beef, palm oil, soy and other commodities if they are linked to the destruction of the world\u2019s forests. The law will require companies that sell\u2026","rel":"","context":"In &quot;Publication&quot;","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/09\/deforestation_policy_researchgate.net_.jpg?fit=968%2C548&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/09\/deforestation_policy_researchgate.net_.jpg?fit=968%2C548&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/09\/deforestation_policy_researchgate.net_.jpg?fit=968%2C548&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/09\/deforestation_policy_researchgate.net_.jpg?fit=968%2C548&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":26259,"url":"https:\/\/gapki.id\/en\/news\/2023\/03\/31\/oil-palm-smallholders-rally-against-eus-deforestation-law\/","url_meta":{"origin":26230,"position":3},"title":"Oil Palm Smallholders Rally against EU\u2019s Deforestation Law","author":"admin","date":"March 31, 2023","format":false,"excerpt":"JAKARTA -- \u00a0Several groups of oil palm smallholders staged a demonstration against the European Union\u2019s (EU) deforestation law in front of the EU embassy in Jakarta on Wednesday. Representing the association of Indonesian oil palm smallholders (APKASIND0), association of nucleus-plasma oil palm smallholders (ASPEK-PIR), My Palm Oil My Future (SAMADE),\u2026","rel":"","context":"In &quot;Publication&quot;","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/03\/palmoil_sawitindonesia.com_.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/03\/palmoil_sawitindonesia.com_.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/03\/palmoil_sawitindonesia.com_.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/03\/palmoil_sawitindonesia.com_.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":22470,"url":"https:\/\/gapki.id\/en\/news\/2022\/12\/20\/eus-deforestation-law-creates-new-challenges-for-palm-oil\/","url_meta":{"origin":26230,"position":4},"title":"EU\u2019s Deforestation Law Creates New Challenges For Palm Oil","author":"admin","date":"December 20, 2022","format":false,"excerpt":"Jakarta \u2013 The European Union (EU) formally approved the law on deforestation-free products on 6 December 2022. Based on the new law, EU will ban all products linked to deforestation, including coffee, beef, soybean, cocoa, rubber, wood, leather, charcoal, furniture, and palm oil derivative products. The law will require companies\u2026","rel":"","context":"In &quot;Publication&quot;","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/12\/palmoil_mightyearth.org_.png?fit=887%2C523&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/12\/palmoil_mightyearth.org_.png?fit=887%2C523&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/12\/palmoil_mightyearth.org_.png?fit=887%2C523&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/12\/palmoil_mightyearth.org_.png?fit=887%2C523&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":20158,"url":"https:\/\/gapki.id\/en\/news\/2021\/05\/24\/ri-ambassador-protests-belgium-ban-on-biodiesel-from-palm-oil\/","url_meta":{"origin":26230,"position":5},"title":"RI Ambassador Protests Belgium Ban On Biodiesel From Palm Oil","author":"admin","date":"May 24, 2021","format":false,"excerpt":"Jakarta \u2013 Indonesian Ambassador to Belgium, Luxembourg and European Union (EU), Andri Hadi expressed regret over Belgium\u2019s decision to issue the royal decree on product standards for transport fuels from renewable sources, which will ban the use of palm oil-based biofuel in the country since January 2022. Ambassador Andri based\u2026","rel":"","context":"In &quot;Publication&quot;","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/05\/palmoil_ambassador_rocketcdn.me_.jpg?fit=793%2C440&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/05\/palmoil_ambassador_rocketcdn.me_.jpg?fit=793%2C440&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/05\/palmoil_ambassador_rocketcdn.me_.jpg?fit=793%2C440&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/05\/palmoil_ambassador_rocketcdn.me_.jpg?fit=793%2C440&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/welfare_moderndiplomacy.eu_.jpg?fit=812%2C444&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/26230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=26230"}],"version-history":[{"count":0,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/26230\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/21615"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=26230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=26230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=26230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}