EU Update - 1st edition for March 2016
by Uthaya kumar
Overall, the new regulation of the European Council does not bring any significant changes for the import of palm oil. Neither have the product and its subsidiaries been stricken from the list of suspensions, nor did their status change in any meaningful way.

The only significant change is the new setting of an earlier review deadline. As this, however, is affecting all products on the list, this needs to be considered a change in standard procedure rather than a change in policy towards palm oil. If one takes the lack of alternatives to palm oil on the European market into account, a change of the status of palm oil in coming years is rather unlikely, independent of review deadlines.

In addition, the adding of the product category of “fatty acids with high purity of heading” as one of the product groups exempt from tariff duties shows that the application of palm oil is rather increasing than decreasing. One can therefore conclude that palm oil producers can regard the amendment to the regulation as a benevolent act in the worst case and beneficial for a further expansion of palm oil sales in Europe in the best case.

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