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Sticky business: Region frets over EU regulation that affects palm oil trade
Singapore-based traders may feel the impact, but they can also be a force for good.
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A man handling oil palm fruit in Indonesia. The EU’s regulation aims to stop consumption that can drive deforestation, but many have painted it as a “ban on palm oil”.
PHOTO: AFP
Simon Tay and Aaron Choo
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Agriculture and commodities have always been important for our region, and remain a priority for Indonesia, Malaysia and Thailand. But concerns about climate impacts and deforestation have now come to the fore. It is in this context that an upcoming regulation from the European Union could have a huge impact on the region.
On the face of it, the aim of the EU’s Regulation on Deforestation-free products, or EUDR, is noble. It wants Europeans to avoid buying, using or consuming products that contribute to deforestation. In reality, the move can be hugely disruptive for the region’s producers, the European consumers and even players in Singapore.
