This report is also available in Bahasa Indonesia.
The European Union (EU) and Indonesia have been negotiating a Free Trade Agreement (FTA), known as the Comprehensive Economic Partnership Agreement (CEPA) since 2016. There have been eleven rounds of negotiations, but trade in ‘sustainable’ palm oil remains a stumbling block.
In parallel to the FTA negotiations with the EU, Indonesia concluded an FTA with the European Free Trade Association (EFTA) (Iceland, Lichtenstein, Norway and Switzerland), which came into force on 1 November 2021. This agreement gives preferential market access to sustainable palm oil.
This paper analyses the provisions for sustainable palm oil included in the CEPA between Indonesia and the EFTA states. It considers whether similar provisions could be included in the FTA currently being negotiated between Indonesia and the EU and suggests ways forward for future trade agreements aimed at promoting trade in sustainably produced palm oil.