Indonesia, Malaysia freeze trade talks with EU
BENGALURU: Indonesia and Malaysia will delay trade talks with the European Union (EU) while they seek fairer treatment for small palm oil producers, the Financial Times reported on Wednesday.
Malaysia’s Deputy Prime Minister Fadillah Yusof said the EU’s recently adopted law banning the import of products that come from land cleared of forests was “punitive and unfair treatment towards us and to smallholders in particular”, the report added.
Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said the policy favoured “large corporations or multinationals” which could afford the level of bureaucracy that the regulation will demand, the FT reported.
Indonesia and Malaysia earlier this month sent top officials to the EU to voice concern over the deforestation law, which they believe could be detrimental to small farming businesses.
Published in Dawn, June 1st, 2023