Core Points - The EU and Indonesia have finalized a free-trade agreement that includes zero tariffs on palm oil exports from Indonesia, which is seen as a significant development for both economies [1][3] - The agreement also removes duties on certain EU agri-food products, receiving support from EU farming lobby groups Copa and Cogeca [1] Trade Agreement Details - The Comprehensive Economic Partnership Agreement (CEPA) includes a protocol aimed at promoting sustainable palm oil trade [3] - The agreement establishes a dialogue platform for regulatory developments relevant to the palm oil sector and aims to enhance cooperation on sustainability issues [4] Criticism and Concerns - The zero-tariff rate on Indonesian palm oil has faced criticism, particularly regarding the defined quota under which it applies, as EU tariffs on palm oil can reach up to 12.8% [2] - Eddy Martono, chairman of the Indonesian Palm Oil Association, expressed concerns that the EU's planned deforestation regulations (EUDR) could undermine the benefits of the zero tariffs if not fulfilled [4][5] EUDR Implementation Delays - The EUDR, which requires companies to prove their supply chains are free from deforestation-related impacts, has faced delays, with the latest implementation date pushed back by another year [6][7] - The European Commission's decision to delay the EUDR has drawn criticism from NGOs focused on forest protection, highlighting potential negative implications for the agreement with Indonesia [7]