INDONESIA will propose to Asia-Pacific Economic Cooperation Summit to put palm oil and rubber on the list of environmental goods, according to Vice Minister of Trade, Bayu Krisnamurthi.
He said that since rubber trees absorb carbon, they should be environmentally friendly. Every product in the environmental good list will only have maximum 5% tariff in 2015. Indonesia has once proposed CPO on the list.
But, many nations considered the commodity environmental unfriendly. Representatives of the US Environmental Protection Agency recently visited Indonesia to observe palm oil management in the nation. Should EPA agree that CPO is an environmental product, it will be easier for CPO to be on the list. Indonesia faces tariff barrier for the export of CPO. France even planned to impose 300% import tax because CPO is considered detrimental to environment and health. (RJA)
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