Indonesia is preparing two further steps towards the implementation of the European Union Free Deforestation Act (EUDR): finalizing the EUDR litigation to the World Trade Organization (WTO) and transferring the market for crude palm oil and its derivative products from the EU. Deputy Minister of Trade Jerry Sambuaga stated that Indonesia has submitted objections regarding EUDR implementation to the European Union Commission (EU) and bilaterally. The process is likely to be followed by a settlement through a trial or litigation at the WTO, which must first pass through the consultation mechanism at the WTO. The Indonesian government believes that the EU policy is not in line with the principles of the WTO rules, which include fair and non-discriminatory trade. The EU's current policies, such as environmental and climate change, are not the right reasons for Indonesia's export products, such as palm oil, coffee, cocoa, and wood products.In addition to the litigation route, Indonesia plans to divert the market for crude palm oil and its derivative products from the EU to China, Pakistan, the United States, Africa, and the Eurasian Economic Union (UEE). The export value of CPO and its derivative products in January-April 2023 was US$8.79 billion, with an annual increase of 21.1 percent. The Indonesian Palm Oil Producers Association (Gapki) is exploring cooperation in the trade of CPO and its derivative products with UEE countries, including Russia, which plans to increase CPO imports to support Indonesia's oleochemical industry.The Indonesian Palm Oil Growers Association (Apkasindo) prefers to maintain exports of CPO and its derivatives to the EU, but this step needs to be accompanied by a strategy to expand the market, domestic absorption, and downstream palm oil at the farmer level. The uptake of Indonesian palm oil products in the EU market is still small, with only 2.05 million tons exported to the EU in 2020.Link di fonte: https://www.kompas.id/baca/ekonomi/2023/06/27/hadapi-eudr-ri-siapkan-jalur-litigasi-dan-alih-pasar (ICE GIACARTA)

Fonte notizia: Kompas - 27 June 2023