KUALA LUMPUR — The European Union will set up a joint activity power with Malaysia and Indonesia to assist the implementation of the EU’s new deforestation regulation, a rule that has sparked considerations amongst Southeast Asia’s agricultural commodity exporters.
The EU Deforestation Regulation (EUDR), which took impact Thursday, goals to halt the sale of palm oil, soy, espresso, cocoa, rubber, timber and beef within the EU market if these merchandise originate from land deforested after 2020. Since its introduction final yr, the EUDR has change into a sore level between the EU and each Malaysia and Indonesia, with the Southeast Asian nations arguing the regulation discriminates towards their palm oil industries.