The EU and Indonesia have finalized a free-trade deal featuring zero tariffs on palm oil exports from Indonesia. The agreement also eliminates duties on certain EU agri-food products. The deal must still be approved by the European Council and European Parliament. However, campaign groups have criticized the zero-tariff rate on Indonesian palm oil, which will face zero tariffs within a specific quota under the agreement.
The EU’s Comprehensive Economic Partnership Agreement with Indonesia includes a protocol on palm oil to promote sustainable trade. Eddy Martono from the Indonesian Palm Oil Association praised the deal but expressed concern about the EU’s planned deforestation regulations. The European Commission is proposing another delay to the implementation of the regulations, which require companies to prove their supply chains are free from deforestation-related impacts.
Environmental NGO Fern criticized the EU-Indonesia deal and the potential delay to the deforestation rules. The group believes the agreement reinforces an extractive model harmful to Indonesia’s forests. Mondelez International called for a delay to the rules, while Nestlé and Ferrero urged swift, ambitious implementation. The EU primarily exports dairy and animal products to Indonesia, while Indonesia’s main exports to the EU are palm oil, cocoa, and coffee.
Farm Europe, representing farming organizations, noted limited export opportunities in Indonesia. The main impact is expected on Indonesian palm oil exports, benefiting from tariff-free quotas. The EU faces tough competition in beef, dairy, wheat, and rice exports to Indonesia. The deal was covered by Just Food, a GlobalData brand, highlighting the potential impact on trade between the EU and Indonesia. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 3.5% and the Dow Jones Industrial Average falling by 4%. This was the largest single-day percentage drop in over a year, caused by concerns over rising inflation and interest rates.
2. In a surprising turn of events, the unemployment rate unexpectedly dropped to 3.8% in the latest government report. This is the lowest level since the pandemic began, with 431,000 jobs added in the month of October. Economists are optimistic about the strong labor market recovery.
3. The housing market continues to boom, with home prices rising by 19.5% in September compared to the previous year. This surge in prices is driven by high demand, low inventory, and historically low mortgage rates. Experts are warning of a potential housing bubble if prices continue to rise at this pace.
4. The Federal Reserve announced plans to begin tapering its bond-buying program in an effort to combat inflation. The central bank will reduce its monthly purchases by $15 billion, signaling confidence in the economy’s recovery. This decision could lead to higher interest rates in the future.
5. The tech sector faced a major setback as several big-name companies reported disappointing earnings. Apple, Amazon, and Meta Platforms all saw their stocks plummet after missing revenue forecasts. This has raised concerns about the overall health of the technology industry and its impact on the stock market.
Read more at Yahoo Finance: Indonesia set for palm-oil boost in EU trade deal