MARKET DEVELOPMENT
Trade Minister Continues Talks with France Over its Planned Palm Oil Import Tax
Trade Minister Continues Talks with France Over its Planned Palm Oil Import Tax
15/02/2016 (Jakarta Globe) - Indonesia's plea for the French government to reconsider its planned palm oil import tax has received "positive responses," Trade Minister Thomas Lembong said, following recent meetings with several government officials of the European country.
The minister traveled to France last week and met with Ronan Dantec, France's senator within the ecology fraction, and Jerome Bignon, rapporteur of the draft biodiversity bill currently under discussion with the French parliament.
The draft bill includes a progressive tax plan for palm oil imports which Indonesia, the world's largest producer of palm oil, has deemed to be discriminatory and unreasonable.
"The ratification process of the drafted amendment still has several stages, from the Environment Commission level to the National Assembly level," Thomas said in a statement, noting that the draft bill is scheduled to be decided by France's National Assembly in March.
"During that time frame, I will continue to communicate and lobby to stakeholders, especially the Ecology fraction, as well as possible."
Thomas said the progressive tax plan — which would begin gradually increasing import taxes on palm oil from next year, reaching 900 euro ($1,000) per ton by 2020 — isn't an "appropriate solution" to achieving environmental conservation. He called for a more creative plan hatched between Indonesia and France to bridge environmental and trade goals.
The minister pointed to the spread of misinformation about palm oil in France. In response, Thomas has invited officials from the French parliament and government to visit Indonesia and observe oil palm plantations in the country.
"Through a bilateral corridor between Indonesia and France, we will increase dialogue among the two countries. I'm sure we can reach an understanding," Thomas said. "There will absolutely be a follow-up visit. We've asked the Indonesian embassy in Paris to report the development."
The minister traveled to France last week and met with Ronan Dantec, France's senator within the ecology fraction, and Jerome Bignon, rapporteur of the draft biodiversity bill currently under discussion with the French parliament.
The draft bill includes a progressive tax plan for palm oil imports which Indonesia, the world's largest producer of palm oil, has deemed to be discriminatory and unreasonable.
"The ratification process of the drafted amendment still has several stages, from the Environment Commission level to the National Assembly level," Thomas said in a statement, noting that the draft bill is scheduled to be decided by France's National Assembly in March.
"During that time frame, I will continue to communicate and lobby to stakeholders, especially the Ecology fraction, as well as possible."
Thomas said the progressive tax plan — which would begin gradually increasing import taxes on palm oil from next year, reaching 900 euro ($1,000) per ton by 2020 — isn't an "appropriate solution" to achieving environmental conservation. He called for a more creative plan hatched between Indonesia and France to bridge environmental and trade goals.
The minister pointed to the spread of misinformation about palm oil in France. In response, Thomas has invited officials from the French parliament and government to visit Indonesia and observe oil palm plantations in the country.
"Through a bilateral corridor between Indonesia and France, we will increase dialogue among the two countries. I'm sure we can reach an understanding," Thomas said. "There will absolutely be a follow-up visit. We've asked the Indonesian embassy in Paris to report the development."