The Search for Balance Between Free Trade And Environment Protection: Case Study of Indonesian CPO Export to Eus Biofuel Market

Adrian Ishak, Poppy S. Winanti

2016 | Skripsi | Ilmu Hubungan Internasional

Abstract Keyword: CPO, International Trade, Trade Dispute, Environment, European Union, Indonesia, RED, Biofuel, Renewable Energy. Word count: 14,769 This writing discuss one of the contemporary issues in today’s global trade relations, the overlapping degree between trade and environmental policy. The presented case study explore the political skirmish that arises from the introduction of a higher environmental standard in a unilateral manner. A complex political problem is present in the European Union’s attempt to introduce higher environmental standard for biofuel in its market. Through this standard, EU seek to ensure that all the crops used as the biofuel are produced in environmentally responsible way. To do so, this standard contain list of crops deemed as sustainable and unsustainable source of biofuel, based on the calculation of green-house-gases savings estimation. The crops listed in the unsustainable category will receive less favorable treatment in the EU’s market. Inevitably this standard exerts adverse effect for crops listed in the unsustainable category. The Crude Palm Oil inclusion in the unsustainable category, ignites strong reaction from the Palm Oil producing countries, including Indonesia. This writing then, takes place as an effort to understand the political process that shape the response of Indonesian government towards the EU’s biofuel sustainability standard. By doing so, this writing will serve as an academic insight to understand the perplexity of international trade issue in today’s world. Particularly in terms of its overlapping degree with non-trade issues and the impact of diminishing dichotomy between international – domestic political sphere.

Kata Kunci : Perdagangan Internasional