The Jakarta Post carried an opinion feature by Oxley on Aug. 3 entitled "A new protectionist threat: Anti-growth environmentalism". I wish to take this opportunity to respond.
Oxley states that the EU Renewable Energy Directive "threatens to block imports of biofuel from Indonesia".
He goes on to say that "EU would be seeking to use trade barriers and climate change objectives to restrict imports of timber products from Indonesia".
The article thus implies that the EU would be using these environmental policies to drive trade policy objectives with the purpose to change forestry policies in developing countries like Indonesia.
Oxley's facts are simply untrue and I wish to set the record straight.
First of all, the article incorrectly mixes two different EU policies. First, the EU Renewable Energy Directive aims to promote the use of biofuels within the EU and one such potential biofuel is palm oil. Second, there is the EU policy on timber imports, which similarly to the Lacey Act of the United States, has the objective to fight illegal logging.
I would like to stress that Indonesia's crude palm oil exports will continue to enjoy full and unimpeded access to the EU market, regardless of how their palm oil is produced.
Second, Indonesia's crude palm oil exports will continue to enter the EU at the same tariff rates as in the past, regardless of how the palm oil is produced and processed. So the point of your story that the EU may "block imports" of Indonesian crude palm oil into the EU is simply incorrect.
In fact, the EU plans to offer additional incentives and help to those Indonesian exporters who are producing and processing palm oil in a sustainable and eco-friendly way. Similar policies are used every day around the world, for instance by imposing high taxes on cigarettes to promote health objectives.
EU imports of palm oil from Indonesia in 2008 amounted to 1.9 billion euro.
There has been a tremendous growth of 27 percent on the average over the last three years, and Indonesia now accounts for almost a quarter of total EU palm oil imports from the world.
Julian Wilson Ambassador and Head of Delegation European Union, European Commission Delegation to Indonesia Jakarta
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