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Switzerland confident palm-oil deal with Indonesia can help sustainabilty campaign
A visiting Swiss delegation has expressed confidence that the free trade agreement (FTA) with EFTA countries, a group which comprises the Alpine country, Iceland, Norway and Liechtenstein could spur further reform in the country.
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A worker holds up oil palm fruit at a plantation in Meulaboh, Aceh, on March 28, 2019. (AFP/Chaideer Mahyuddin)
T
he Swiss government is confident that a landmark trade agreement with Indonesia, which allows the exportation of palm oil to the European country at a low tariff, can improve environmentally sustainable practices.
A visiting Swiss delegation also expressed confidence that the free trade agreement (FTA) with EFTA countries, a group which comprises the Alpine country, Iceland, Norway and Liechtenstein could spur further reform in the country.
"This agreement will not only open access to markets on both sides, but also guarantee legal certainty, and protection for the environment and labor," Switzerland's President of the Council of States Alex Kuprecht told a press briefing on Monday.
After being approved by Swiss voters in a referendum in March this year, the FTA took effect on Nov. 1.
Switzerland signed the pact with Indonesia in 2018 together with the three other EFTA members. The House of Representatives ratified the agreement in April this year.
Under the FTA, both parties will gradually reduce or abolish import duties on industrial products. For palm oil, Switzerland will reduce tariffs by 20-40 percent for up to 12,500 tons per year, but only if sustainability standards are met.
Indonesia is the world’s top producer of palm oil, which is used in cosmetics, food products and biofuels. Palm oil has faced scrutiny from green activists and consumers, who hold its production responsible for forest loss, fires and worker exploitation.
