20-03-2023, 09:45 PM
The EU will ban Indonesian and Malaysian palm oil imports: green policy or protectionism*?
#Econgram_World
Facts:
1) Palm oil is a driver of deforestation.
2) However, the UK will eliminate its tariffs* on Malaysian palm oil.
3) In contrast, the EU wants to enforce a new deforestation law that will restrict imports of palm oil and other products detrimental to nature.
Analysis:
1) The EU attempts to pursue a green trade policy. In the past, it has already approved the renewable energy directive* that prevents imports of palm oil for biofuels. Now it wants to enforce another green law.
2) Indonesia and Malaysia, the world’s main palm oil producers, contest the EU’s initiative. The countries launched WTO* cases, claiming that:
- The real intent of the EU’s actions might be protectionism.
- A tariff is an ineffective green policy because it does not differentiate between sustainable and destructive producers. Hence, it does not motivate farmers to become green. That is why criticizing the UK’s measure is tough.
- WWF reported that palm plantations have high yields*. Therefore, substituting them with other products, such as sunflower or coconut, would lead to using more land. That is even worse for the environment.
https://www.ft.com/content/74b08c37-e242...aec979b3af
#Econgram_World
Facts:
1) Palm oil is a driver of deforestation.
2) However, the UK will eliminate its tariffs* on Malaysian palm oil.
3) In contrast, the EU wants to enforce a new deforestation law that will restrict imports of palm oil and other products detrimental to nature.
Analysis:
1) The EU attempts to pursue a green trade policy. In the past, it has already approved the renewable energy directive* that prevents imports of palm oil for biofuels. Now it wants to enforce another green law.
2) Indonesia and Malaysia, the world’s main palm oil producers, contest the EU’s initiative. The countries launched WTO* cases, claiming that:
- The real intent of the EU’s actions might be protectionism.
- A tariff is an ineffective green policy because it does not differentiate between sustainable and destructive producers. Hence, it does not motivate farmers to become green. That is why criticizing the UK’s measure is tough.
- WWF reported that palm plantations have high yields*. Therefore, substituting them with other products, such as sunflower or coconut, would lead to using more land. That is even worse for the environment.
https://www.ft.com/content/74b08c37-e242...aec979b3af