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Jakarta: EU will grant zero tariff rate to 1 million metric tons of Indonesian crude palm oils

An Indonesian Minister said that the European Union would grant a zero-tariff rate for a 1 million metric ton export quota per year of Indonesian crude oil palm when both sides ratify an upcoming free trade agreement.

Airlangga hartarto, Indonesia’s economic minister, stated that the EU and Indonesia will sign a free trade agreement in September, and the ratification should follow next year.

He added that the EU would set a quota at a future date for Indonesian palm kernel oil exports, based upon Indonesia's shipments from a previous year.

Susiwijono Megiarso said that the EU would impose a tariff of 3% on crude palm oil exported by Indonesians who do not meet the quota.

Susiwijono, a Susiwijono official, said that the Southeast Asian nation exported around 1.9 millions metric tons crude palm oil to Europe last year.

In Brussels, President Prabowo Subianto and Ursula von der Leyen of the European Commission reached a political accord this month in order to progress the free-trade agreement.

The agreement has been named the Comprehensive Economic Partnership Agreement. (Reporting and editing by David Stanway, Gayatri Sulaiman and Ananda Teresia)

(source: Reuters)