Non-tariff Barriers on Palm Oil Products Cause Concern

Indonesian and Malaysian ministers expressed concern over the evolving non-tariff barriers on palm products in major importing countries during their bilateral talks held in Jakarta yesterday.

Indonesian Coordinating Minister for Maritime Affairs Luhut Pandjaitan and Malaysian Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said these barriers included labelling of food products with “No-Palm Oil” and a proposal to impose high import tax on palm products.

non-tariff barriers palm oil products

In a statement issued following the meeting, the Ministry of Plantation Industries and Commodities said both ministers agreed that the Council of Palm Oil Producing Countries (CPOPC) would spearhead measures to address the issues, including organizing a CPOPC ministerial delegation to Europe.

The ministry stressed that both countries are major global palm oil producers and jointly account for 85% of global production and 91.2% of global exports. It said the setting up of CPOPC is expected to further strengthen cooperation among oil palm producing countries and address evolving issues related to palm oil.

Meanwhile, the bilateral meeting also took stock of the progress made towards operationalizing the Secretariat of CPOPC following the signing of the Charter on its establishment.

Both ministers agreed on the appointment of Benny Wachjudi from Indonesia as the first CPOPC executive director effective yesterday and the signing of the Host Country Agreement between him and the Indonesian government.

“This paves the way for the operationalisation of the CPOPC Secretariat,” the statement noted.

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