Last week, Palm Oil Monitor released the breaking news that a military procurement deal between the Indonesian Government and Airbus for A400M cargo planes was being placed under review, until the EU’s effort to ban palm oil under the Renewable Energy Directive is resolved.
“Hundreds of British jobs have been put in jeopardy by a proposed EU ban on palm oil. Aerospace giant Airbus had been set to win a contract with Indonesia worth up to £1.5billion but the deal appears to have hit the rocks over the EU bid to block one of the country’s major exports.
Indonesia is threatening a tit-for-tat boycott of European goods in protest over EU plans to ban imports of palm oil from the would-be buyers.
Last week the ban was discussed at a meeting between the UK Ambassador in Jakarta and Indonesia’s state-owned Enterprises Minister, Rini Mariani Soemarno. He made clear no trade talks with Europeans would take place until the palm oil ban is lifted”.
This was communicated to a UK delegation, including UK Ambassador to Indonesia, H.E. Moazzam Malik and Richard Graham MP, visiting Jakarta last week to discuss future trade relations.
Articles referenced in this blog:
- Sunday Express, EU News: Palm Oil Ban Puts Hundreds Of British Jobs At Risk
- The Sun on Sunday, Slippery Slope Hundreds Of Brit Jobs Put At Risk As EU Trade War With Indonesia Looms
This is an interesting development, in that popular media are beginning to understand that palm oil discussions are not niche – but rather, are at the forefront of international trade policy with South-East Asia, which has significant impact on local employment in Europe, both positive and negative.
We will continue to bring you the breaking news and the latest policy discussions from the palm oil industry and the global sustainability debate.