EU hopes for trade pact with Indonesia within two years

JAKARTA, Sept 20 — The European Union hopes to strike a free-trade agreement with Indonesia within two years despite disputes with South-east Asia’s largest economy over palm oil and nickel, the bloc’s trade commissioner said today.

Dombrovskis said the disputes needed to be resolved through negotiation and the World Trade Organisation.As part of its “Red II” directive, the EU has decided that biofuels based on palm oil will not count towards its targets for the use of renewable energy by 2030 and it is looking to phase out their use.

The trade commissioner is in Indonesia for a G20 ministerial meeting. He is also due to brief Indonesian officials on a proposed European law aimed at banning imports to the EU that contribute to deforestation.

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