Ministry of Trade (Ministry of Trade) Assesses EU Palm Resolutions Constraining Export Performance of Palm Commodities

By : Hariyanto And Aldo Bella Putra | Friday, November 17 2017 - 20:00 IWST

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INDUSTRY.co.id - Jakarta - Trade Ministry (Kemendag) said that non-technical trade barriers such as the EU palm oil resolution could degrade the export performance of these commodities and exporters will usually choose other export destinations.

"We are worried about these non-technical allegations or barriers that are being hit by other countries. Similar things have happened in Australia that mimics the actions of the United States," said Director of Trade Security at the Ministry of Trade, Pradnyawati to the press in Jakarta on Friday (17 / 11/2017).

Meanwhile, Trade Minister Enggartiasto Lukita said the content would strike back the country that is running a negative campaign for Indonesia's flagship export commodities such as palm oil or crude palm oil (CPO) because the practice is not healthy and will disrupt the Indonesian economy in the future.

"Negative campaigns and countermeasures from palm oil export destinations do not stop. We are stifling in various ways that are done to dispel the export rate of Indonesia's main commodities," said Enggar.

Up to the third Quarter of this year or September 2017, the Directorate General of Foreign Trade (Kemendag) has filed 51 cases, with Article 32 cases of dumping, subsidies, protection (DSS) or recovery efforts and 5 cases in the dispute resolution stage. In addition to DSS, there are also technical barriers related to health issues, environmental issues, standards, and trade policies of trading partner countries that are directly or indirectly.

Outside exchange rate, technical barriers to trade there are impacts on palm oil products in Indonesia, among others related to sustainability, deforestation, health and child labor issues. Instrument of improvement is an instrument that is permissible in international trade practices and is the easiest instrument applied to stem imports from other countries in the era of trade liberalization and the growing number of Free Trade Agreements between countries.