CPO producers countries to strengthen bargaining power<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
In response to India's move to slap a high import duty on crude
\npalm oil (CPO), the world's top CPO producers -- Indonesia,
\nMalaysia and Thailand -- aim to form a trilateral cooperation
\npact that could eventually affect global CPO prices.<\/p>\n
\"We must have a strong cooperation in production and marketing
\n(of CPO), to eventually dominate the world market and set the
\ncourse of the global price,\" Malaysian Minister of International
\nTrade and Industry Rafidah Aziz said here.<\/p>\n
A trilateral cooperation pact would result in the region, as
\nthe world's world's CPO production base, having more bargaining
\npower to negotiate cases like the one in India.<\/p>\n
\"India's move is an act of discrimination against Indonesia,
\nMalaysia and Thailand, as it imposes far higher import duty on
\nCPO compared to soybean oil and other vegetable oil,\" Rafidah
\nsaid after a meeting with Indonesian Minister of Trade Mari E.
\nPangestu on Tuesday.<\/p>\n
However, Rafidah emphasized that cooperation between the three
\ncountries would not be in the form of a cartel -- as that would
\nbe against World Trade Organization regulations.<\/p>\n
In the mean time, concerning India's high import duty on CPO,
\nMalaysia would also pursue further bilateral negotiations with
\nIndia, she said.<\/p>\n
The Indian government recently increased its CPO import duty
\nfrom 65 percent to 80 percent to protect its farmers who make a
\nliving growing soybean and sunflower -- the edible oil of which
\nare CPO substitutes.<\/p>\n
With India currently imposing only 45 percent import duty on
\nsoybean, not only will the country's move to raise CPO import
\nduty help protect local soybean and sunflower farmers, it will
\nalso encourage Indian importers to import soybean oil instead of
\npalm oil products due to the lower duty.<\/p>\n
Separately, Ministry of Trade's director General for
\nInternational Cooperation Pos M. Hutabarat suspected the lower
\nimport rate for soybean oil was a result of lobbying by the U.S.
\nand Brazil, as major soybean producers, at the Uruguay Round of
\ntrade talks in the mid 1990s.<\/p>\n
\"CPO is being discriminated against in favor of soybean oil,\"
\nhe said on Wednesday.<\/p>\n
Earlier, Indonesian Minister of Agriculture Anton Apriyantono
\nsaid the government would possibly join hands with other palm oil
\nproducers in negotiating for India to lower its committed ceiling
\nduty rate through the World Trade Organization.<\/p>\n
However, such a move would take time.<\/p>\n
Anton met with his Indian counterpart last week to lobby for a
\nlower CPO import duty. But India said the decision was final, as
\nit was aimed at protecting its local edible oil producers.<\/p>\n
After Malaysia, Indonesia is the world's second largest
\nexporter of CPO -- a raw material for, among other things,
\ncooking oil, soap and detergent.<\/p>\n
Output from the two countries makes up about 85 percent of
\nthis year's global palm oil production.<\/p>\n
CPO producing countries have been looking for ways to give
\nthem more sway in determining global CPO prices, as opposed to
\nthe current situation in which buyers are more influential than
\nsuppliers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpo-producers-countries-to-strengthen-bargaining-power-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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