An aerial picture shows a new palm oil plantation at the edge of the Lauser National Park in Aceh, Indonesia.
Keystone
Switzerland, Liechtenstein, Iceland and Norway signed on Sunday a free trade agreement with Indonesia, the world’s largest supplier of palm oil. In the medium term, 98% of Swiss exports to the island nation will be exempt from customs duties.
This content was published on
3 minutes
Keystone-SDA, swissinfo.ch/ds
The agreement is to be ratified by 2020 at the latest. With an annual trade volume of CHF830 million, Indonesia is one of Switzerland’s most important trading partners in Southeast Asia. The agreement includes rules for Indonesian palm oil, the Swiss news agency Keystone-SDA reported.
Swiss Economics Minister Johann Schneider-Ammann along with representatives from the three other nations in The European Free Trade Association (EFTA) were in Jakarta for the signing. The EFTA states will become Indonesia’s first free trade partner in Europe. Indonesia’s trade minister, Enggartiasto Lukita, signed on behalf of his country.
In addition to market access, the agreement guarantees legal certainty, the protection of intellectual property and the dismantling of non-tariff barriers to trade, according to the news agency, For palm oil, Switzerland grants tariff discounts for quotas so that domestic vegetable oil production is not endangered.
The agreement also contains obligations to comply with multilateral conventions, particularly in the areas of labour and the environment, as well as a specific provision designed to ensure sustainable production of palm oil.
Indonesia is the world’s largest producer and exporter of palm oil, followed by Malaysia. It is also the largest greenhouse gas emitter after China and the United States.
Palm oil is used in a wide array of consumer goods from makeup to snacks. The industry is linked to deforestation, habitat degradation — especially for orangutans, climate change, animal cruelty and indigenous rights abuses. Land and forests must be cleared for the development of the oil palm plantations in Indonesia and other countries where it is produced.
Switzerland imports between 30,000 and 40,000 tonnes of palm oil every year. Between 80% to 90% of these imports are destined for the food industry and are used to make biscuits, pasta and even instant soup.
Schneider-Ammann wants to initiate the parliamentary approval process immediately. The outgoing economics minister was accompanied in Jakarta by Heinz Karrer, president of the economiesuisseExternal link umbrella organization and Matthias Leuenberger, head of sciencesindustriesExternal link Switzerland, a business association for chemistry, pharma and biotech companies.
Popular Stories
More
Multinational companies
Azeri fossil-fuel cash cow brings controversy to Switzerland
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Nestlé welcomes improved sustainable palm oil standard
This content was published on
Members of the Round Table on Sustainable Palm Oil (RSPO) have voted for stricter standards for certified sustainable palm oil.
Palm oil to remain part of free trade talks despite opposition
This content was published on
The Swiss Senate has narrowly voted against proposals to exclude palm from any free trade agreement with Malaysia and Indonesia.
Does Switzerland produce half of all the food it needs?
This content was published on
So says the government as it tries to convince voters to reject a proposal calling for greater ethical standards in food production. Is it right?
This content was published on
The Swiss Federation of Youth Parliaments has submitted 14 policy ideas proposed by under-25-year-olds to the national parliament.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.