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Gita lobby the U.S. to export oil level is not clear

Kamis, 28 Februari 2013 | 03:31

JAKARTA - Trade Minister Gita Wirjawan efforts to lobby the United States, Chile and Canada in a bilateral meeting at the forum shows the Asia-Pacific Economic Cooperation (APEC) to include palm oil in the list of products and services that are environmentally friendly is not considered to assist exports of palm oil.
Secretary General of the Indonesian Palm Oil Association (GAPKI) Joko Supriyono Minister said the move will not help the performance of palm oil companies in the export market.
The reason, he said, so far, the problem is not the Indonesian palm products environmentally friendly or not. However, problems arise on non-tariff issues encountered when Indonesian palm entry in the U.S. market.
"I think the effort struggles oil products so green product will only affect the tariff, the tariff to zero. But for what non-tariff barriers could be eliminated?" Joko said when contacted merdeka.com, Monday (22/4).
According to him, during the political entrepreneurs still constrained oil trade being played by the United States to detain imported products into the country. Joko said the current greatest need for palm oil products in the U.S. is for biofuels.
Currently, the U.S. uses corn as the basis for making products such fuel. However, if oil gets in, the corn industry will be eroded because of oil imports will be cheaper than U.S. corn plantation.
"Go to the U.S. is expensive, because they compete with oil," he said.
Previous product of crude palm oil or crude palm oil (CPO) from Indonesia has not been recognized by the State of Uncle Sam as an environmentally friendly product. Environmental Protection Agency (EPA) in a report in 2011 said that the Indonesian CPO industry produces gas emissions more than 20 percent and this does not fit with the world gas emission reduction commitments.
America is also the main actor that drives many countries do not include CPO in the list of 54 products that receive priority admission rates of 5 per cent reduction in the APEC forum. As a result of oil products are not competitive compared to other vegetable oils.