Govt to Avoid Trade War with the EU

TRADE Minister Enggartiasto Lukita reaffirmed the government commitment to avoid trade war with the European Union concerning palm oil products. The minister demand countries in the EU not to ban crude palm oil (CPO)-based biodiesel. If the EU do so, Indonesia can make the same policy to ban products from the EU. “If they phase out CPO products in 2030, I will phase out their products,” said Enggartiasto as interviewed by CNBC Indonesia TV, (17/12/2018). However, Enggartiasto said that Indonesia will not do that because it will trigger a new trade war. “We don’t like that. This is a trade war. The EU always says they don’t war a trade war, neither do we,” Enggartiasto added. The government has lobbied countries in the EU several times and he invited the EU to negotiate on this issue. “If they say it was because they were pressured by the parliament. I can say we are facing pressure as well. It’s better for us to negotiate.” Speaking about allegation that palm oil contribute to environmental degradation, Enggartiasto said that it is evidently not true, given the fact that beef cattle is the leading cause of environment harm. “Dairy products, milk, and meat require greater areas of land. If it were stopped, the would no longer have beef cattle. Is it fair?,” Enggartiasto added. ***