JAKARTA — Even as the terms of its exit from the European Union remain undecided, the U.K. looks set to take on Brussels over access to Asian markets, with Indonesia’s growing economy set to be the first, and potentially crucial, battleground. While Britain tries to lay the groundwork for future trade agreements, the bloc it is leaving has already brokered a number of deals across the region. Last week, the EU and Indonesia held the fourth round of negotiations over a proposed free trade deal known as the Indonesia-European Union Comprehensive Economic Partnership Agreement. As those discussions were taking place in Indonesian President Joko Widodo’s hometown of Solo in central Java, the U.K.’s Foreign and Commonwealth Office announced the appointment of Richard Michael as Britain’s official export finance representative in Indonesia.
JAKARTA — Major palm oil producers in Asia are hoping European governments will not go ahead with proposals that could undermine their businesses and damage the Indonesian and Malaysian economies. Proponents say palm oil requires less land to grow than other vegetable oil crops. “Palm oil is the most productive oil that exists today,” said Colin Lee, director of corporate affairs at Cargill Tropical Palm, which has around 80,000 hectares of oil palm plantation in the region. Indonesia and Malaysia provide around 85% of the world’s palm oil. Palm oil makes up between 10% and 12% of their total exports, according to global bank HSBC.
BELCOO, NORTHERN IRELAND — On the short bridge between Blacklion and Belcoo stand two clues that the crossing links not only a pair of towns, but two countries. The road-sign speed limits for Blacklion in the Republic of Ireland are in kilometers per hour. In Belcoo, in Northern Ireland, miles are used. Over the last two decades — particularly since the 1998 peace deal which ended three decades of civil war in Northern Ireland — Belcoo, population 540, and Blacklion, population 194, have are effectively operated as one town. “There are no barriers, it’s how people want it,” said Eugene McCann, who runs a well-stocked grocery store and post office in Belcoo, his hometown.
DUBLIN — Ahead of the U.K. exit from the European Union in March 2019, several Asian financial institutions have already set up hubs in other cities within the bloc to ensure continued access to the continent. Ireland is among the countries hoping to benefit from Asian unease prompted by the Brexit vote, with Dublin regularly touted alongside Amsterdam, Frankfurt, Luxembourg and Paris as possible destinations for banks trying to reposition due to Brexit. So far, Nomura International and Daiwa Securities have set up hubs in Frankfurt, base of the European Central Bank, to serve their European businesses while still keeping their London presence; Mitsubishi UFJ Financial Group has chosen Amsterdam for its new European base; and Bank of China has opened a new subsidiary in Dublin.
JAKARTA — Indonesia and Malaysia, which produce more than 80% of the world’s palm oil, are resisting proposals by European parliamentarians that could limit their access to the second biggest palm oil market after India. Government ministers from Malaysia and Indonesia, along with some regional palm oil producers, met in Jakarta on April 11 to plan a response to a resolution approved on April 4 by European parliament members concerning “palm oil and deforestation.” The parliamentarians requested the EU to “introduce a single certification scheme for palm oil entering the EU market and phase out the use of vegetable oils that drive deforestation by 2020.” They hope for an EU-wide ban on biodiesel made from palm oil by 2020, claiming that the expansion of palm oil plantations, mostly in Southeast Asia, is causing “massive forest fires, the drying up of rivers, soil erosion, peatland drainage, the pollution of waterways and overall loss of biodiversity.” Indonesia’s Environment and Forestry Minister Siti Nurbaya Bakar called the EU proposals an “insult,” while the foreign ministry accused the EU of “protectionism” and of ignoring the rights of millions of Indonesian farmers whose main source of income is from small oil palm plots.
JAKARTA — Stalled efforts by the U.S. and European Union to forge a trans-Atlantic trade pact will remain on ice for the foreseeable future — regardless of the outcome of the Nov. 8 U.S. presidential election, according to the EU’s agriculture commissioner. Failure to finalize the proposed Transatlantic Trade and Investment Partnership pact reflects growing protectionist sentiment in both the U.S. and Europe, and mirrors problems besetting its U.S.-Asian counterpart, the Trans-Pacific Partnership agreement. Negotiations on the TTIP will not resume until the new U.S. administration — led by Democrat Hillary Clinton or her Republican rival Donald Trump — settles into office, said Phil Hogan, the European Commissioner for Agriculture and Rural Development. “These are on hold at the moment until we know what the new policy position of the U.S. will be,” Hogan said on Tuesday in Jakarta, on the final leg of an EU trade mission to Asia. “We have had a lot of political rhetoric from both candidates, probably to a greater extent from Mr. Trump who has expressed himself as anti-trade, Mrs. Clinton has said less than positive things about trade as well.”
JAKARTA – Meeting Indonesian President Joko Widodo on Monday to discuss mutual trade and investment prospects, UK Prime Minister David Cameron told media that “we [the U.K. and Indonesia] are natural business partners and there is much more we can do.” In return for considering British investments, Indonesia wants greater access to the U.K. and to the wider European market for its exports, which are mostly commodities such as palm oil, rubber, coal, coffee, copper, oil and natural gas. “The lower tariff [is] needed on Indonesian [primary] products like wood, clothing, coffee and fisheries,” Widodo said after meeting Cameron, adding that British applications for investment in Indonesian infrastructure would be considered.