Indonesia Threatens Tariff Hike on EU Dairy in Trade Spat

 The warning could escalate a trade dispute with the EU after Indonesia - the world's top palm oil producer - hit out at the bloc's plan to cut its use of palm-based biofuels by 2030.

Palm oil is the world's most widely used vegetable oil and a key ingredient in a wide range of products from food to cosmetics.

But environmentalists say it drives deforestation, with huge swathes of South-east Asian rainforest logged in recent decades to make way for palm plantations.

On Friday, trade minister Enggartiasto Lukita said he had told Indonesia's dairy importers to look for new suppliers outside Europe, and threatened to hike existing tariffs on EU dairy products, which currently range from 5-10 per cent.

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Source: The Straits Times