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In the midst of a pandemic, the EU must suspend its proposed palm oil ban

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The world is finally waking up to the realization that the Coronavirus pandemic could result in a global death toll in the millions – if not higher. Hopefully, that won’t be the case, and a cure or at least a prophylactic medicine can be found soon to end “World War V” (as many are calling the Coronavirus pandemic, with the V standing for Virus)

COVID-19 is already projected to cost the global economy up to $2 trillion according to UNCTAD. Indeed, even before the crisis, the status of the global economy was pretty dire. UNCTAD issued a similar warning in September of last year that 2020 would likely see a global recession.

Contributing to UNCTAD’s outlook in 2019 were a plethora of trade wars around the world. Most notably between China and the United States and of course, the United Kingdom’s exit from the European Union is also tied to similar concerns. 

Those issues may have stolen the headlines but, plenty of minor skirmishes also involved the EU and the United States and even the United States and Turkey have played out of the past view years. Thus, prior to “World War V” the world had seen a plethora of protectionist battles being rage. And now, protectionist tensions are already beginning to impact “World War V” too – with the US recently hitting out at Germany, Russia and Turkey for introducing emergency export controls on medical supplies. 

Though it is not a headline stealer, the plight of my own country Malaysia is worth reviewing. A similar trade war is brewing between the EU and ASEAN. One that will impact millions of lives in a global economy that is already on the ropes given the impact of the Coronavirus. It wasn’t supposed to be this way. The European Union’s 2016 Global Europe Strategy hinted that an EU-ASEAN free trade deal was around the corner.

Yet, nearly four years later (despite some progress such as the recently signed EU-Singapore trade deal) such an historic agreement seems farther than ever. This year an EU blanket ban on palm oil importation is to be implemented. This will adversely impact Malaysia and many countries in the Global South. The ban comes over deforestation concerns. Yet, Malaysia has passed several landmark bills to ensure the sustainability of Palm Oil in recent years. The globe’s first government-backed mandatory certification standards for making palm oil sustainable were passed in Malaysia in November 2018. We need no push from the European Union for that to happen -it was something the government had long been working on in line with demand from consumers.

More importantly, an authoritative study from the International Union for the Conservation of Nature found that if done correctly, palm oil uses fewer resources (in this case land, fertilizer, and other chemicals) than a similar amount of oil produced from rapeseed, soy beans or other conventional equivalents. The overall findings of that report were verified in a second scientific study published in Nature this month by researchers at the University of Bath in the United Kingdom.

The current EU ban on palm oil makes no exemption for sustainable palm oil and has been a veritable economic death sentence in the current climate. Malaysia’s agriculture sector, of which palm oil is the biggest cash crop, employs over 1.5 million workers in Malaysia or 10 percent of our overall work force.

Since 40% of palm oil is grown by small holder farmers (farmers who have already been hard hit by the Corona onslaught), this regulation will hurt the most vulnerable communities in our nation hardest.

Malaysia, with over 1600 cases now has the worst Corona virus problem in Asia after South Korea and of course, China. Four people have died it what is already the worst outbreak of the virus in all of South East Asia. The economic impact of this is hard to foresee but, already the government of Malaysia has already issued a stimulus package for the economy, and we are set to see a spike in unemployment in our country over the Coronavirus. After all, the Palm oil industry was one of the first in Malaysia (the largest producer of the crop in the world) to respond to the crisis by telling members to go into a lockdown mode over concerns of spreading the virus.

However, coronavirus may ironically, be the trigger that finally compels both parties’ to compromise and agree on an historic trade deal that takes into consideration the needs of both the EU and ASEAN. After all, the EU also cannot afford to persist in a trade stand-off with ASEAN at a time of potential economic catastrophe.

For a trade deal to become a reality, steps must be taken by both parties. Malaysia must renew its commitment towards sustainable palm oil cultivation, something it has already shown a tangible commitment towards. And the EU must accept a longer implementation timeframe given the current global turmoil brought on by Covid-19. Such a deal can be a win-win for both trading blocs as sustainable palm oil could help power the EU’s push for a “Green New Deal” to power a 21st century infrastructure grid.

The alternative – curtailing global trade at a time when it will plunge the world into the most significant recession in living memory and jeopardize millions of lives – in Malaysia and beyond, is simply not an option.

In the aftermath of “World War V” hopefully we can bury protectionism and trade wars in the interest of global recovery. The sooner we act, hopefully, there will be much less to bury.

Nik Nazmi is a Malaysian MP and Chairs the Defence and Home Affairs Special Select Committee. He runs educational and football programs at the community level in Kuala Lumpur.

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Southeast Asia

Learning to build a community from a ”Solok Literacy Community”in the West Sumatra

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Established on September 21, 2020 in Solok City, West Sumatra Province, Indonesia. Solok Literacy Community initiated by the young people of Solok City has grown rapidly into a community that has its own trendsetter among young people. Bringing narratives smelling of education, The Literacy Solok Community has a movement with measurable progressiveness that can be seen from its flagship programs.

Starting from the free reading stall movement that has been moving in various corners of Solok City over the past few months. The concept of film surgery that provides proactive discussion space for all segmentation in society. “Diskusi Ngopi” activities which in fact is the concept of FGD (Focus Group Discussion), run with interesting themes and issues so that it can be considered as one of the favorite programs that are often attended by many young people in Solok. Then a class of interests and talents aimed at reactivating the soft skills and great talents of the children of Solok City.

Solok Literacy Community has a long-term goal of making Solok City as a Literacy City in 2025. With these noble targets, of course we together need small steps in the form of programs that run consistently over time. Because after all, a long journey will always begin with small steps in the process of achieving it.

Many appreciations and positive impressions from the surrounding community continue to be received by the Solok Literacy Community. This is certainly a big responsibility for the Solok Literacy Community to continue to commit to grounding literacy in Solok City. Solok Literacy Community activities can be checked directly through instagram social media accounts @solok_literasi. Carrying the tagline #penetrategloomy or penetrating the gloom and #lawanpembodohan, members of the Solok Literacy Community or better known as Soliters, will always make innovative breakthroughs in completing the goal of making Solok City 2025 as a Literacy City.

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Indonesia Submit Extended Continental Shelf Proposal Amidst Pandemic: Why now is important?

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Authors: Aristyo Rizka Darmawan and Arie Afriansyah*

Indonesia’s active cases of coronavirus have been getting more worrying with more than 100.000 active cases. With nearly a year of pandemic, Indonesia’s not only facing a serious health crisis but also an economic catastrophe. People lose their jobs and GDP expected to shrink by 1.5 percent. Jakarta government therefore should work hard to anticipate the worst condition in 2021.

With this serious economic threat, Indonesia surely has to explore maximize its maritime geographic potential to pass this economic crisis and gain more national revenue to recover from the impact of the pandemic. And there where the Extended Continental Shelf submission should play an important role.

Recently this week, Indonesia submit a second proposal for the extended continental shelf in the southwest of the island of Sumatra to the United Nations Commission on the Limit of the Continental Shelf (CLCS). Continental shelf is that part of the seabed over which a coastal State exercises sovereign rights concerning the exploration and exploitation of natural resources including oil and gas deposits as well as other minerals and biological resources.

Therefore, this article argues that now is the right time for Indonesia to maximize its Continental Shelf claim under the law of the sea convention for at least three reasons.

First, one could not underestimate the economic potential of the Continental Shelf, since the US Truman Proclamation in 1945, countries have been aware of the economic potential from the oil and gas exploration in the continental shelf.

By being able to explore and exploit natural resources in the strategic continental shelf, at least Indonesia will gain more revenue to recover the economy. Even though indeed the oil and gas business is also hit by the pandemic, however, Indonesia’s extended continental shelf area might give a future potentials area for exploitation in long term. Therefore, it will help Indonesia prepare a long-term economic strategy to recover from the pandemic. After Indonesia can prove that there is a natural prolongation of the continental shelf.

Second, as the Indo-Pacific region is getting more significant in world affairs, it is strategic for Indonesia to have a more strategic presence in the region. This will make Indonesia not only an object of the geopolitical competition to utilize resources in the region, but also a player in getting the economic potential of the region.

And third, it is also showing that President Joko Widodo’s global maritime fulcrum agenda is not yet to perish. Even though in his second term of administration global maritime fulcrum has nearly never been discussed, this momentum could be a good time to prove that Indonesia are still committed to the Global maritime fulcrum by enhancing more maritime diplomacy.

Though this is not the first time Indonesia submit an extended Continental Shelf proposal to the CLCS, this time it is more likely to be accepted by the commission. Not to mention the geographical elements of natural prolongation of the continental shelf that has to be proved by geologist.

The fact that Indonesia has no maritime border with any neighboring states in the Southwest of Sumatra. Therefore, unlike Malaysia’s extended continental shelf proposal in the South China Sea that provoke many political responses from many states, it is less likely that Indonesia extended continental shelf proposal will raise protest from any states.

However, the most important thing to realize the potential benefit of the extended continental shelf as discussed earlier, Indonesia should have a strategy and road map how what to do after Indonesia gets the extended continental shelf.

*Arie Afriansyah is a Senior Lecturer in international law and Chairman of the Center for Sustainable Ocean Policy at University of Indonesia.

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The China factor in India’s recent engagement with Vietnam

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Photo courtesy - PTI

In its fourth year since the elevation of ties to a Comprehensive Strategic Partnership, December 2020 witnessed an enhanced cooperation between New Delhi and Hanoi, ranging from humanitarian assistance and disaster relief to defence and maritime cooperation, amid common concerns about China.

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In an effort to boost defence cooperation, the navies of India and Vietnam conducted atwo-day passage exercise (Passex) in the South China Sea on December 26 and 27, 2020, reinforcing interoperability and jointness in the maritime sphere. Two days before this exercise has begun, an Indian naval ship arrived at Nha Rong Port in Ho Chi Minh City to offer humanitarian assistance for the flood-affected parts of Central Vietnam.

Before this, in the same week, during a virtual summit between Indian Prime Minister Narendra Modi and his Vietnamese counterpart Nguyen Xuan Phuc on December 21, both countries inked seven agreements on miscellaneous areas of cooperation and jointly unveiled a vision and plan of action for the future, as both countries encounter the common Chinese threat in their respective neighbourhoods.

Vietnam’s disputes with China

India’s bone of contention with China ranges from the Himalayas to the Indian Ocean. Both Vietnam and India share territorial borders with China. Well, it seems odd that despite its common socialistic political backgrounds, China and Vietnam remains largely hostile. 

Having a 3,260 km coastline, covering much of the western part of South China Sea, Vietnam’s exclusive economic zone (EEZ) overlaps with Chinese claims based on the legally invalid and vaguely defined Nine-Dash Line concept, unacceptable for all the other countries in the region, including Vietnam, Philippines, Malaysia, and Brunei.

In 2016, China lost a case brought out by the Philippines at the Permanent Court of Arbitration based in The Hague when the court ruled that Beijing’s had no legal basis to claim ‘historic rights’ as per the nine-dash line. China rejected the ruling and continued to build artificial islands in the South China Sea, which it has been doing since 2013, some of them later militarized to gain favourable strategic footholds in the sea and the entire region.

The Paracel and the Spratly Islands in the South China Sea has been historically considered part of Vietnam. The Geneva Accords of 1954, which ended the First Indochina War, gave the erstwhile South Vietnam control of territories south of the 17th Parallel, which included these island groups. But, China lays claims on all of these islands and occupies some of them, leading to an ongoing dispute with Vietnam.

China and Vietnam also fought a border war from 1979 to 1990. But today, the disputes largely remain in the maritime sphere, in the South China Sea.

China’s eyes on the Indian Ocean

The Indian Ocean has been long regarded as India’s sphere of influence. But with the Belt and Road Initiative, a trillion-dollar megaproject proposed by Chinese President Xi Jinping in 2013, and the Maritime Silk Road connecting three continents, which is part of it, China has grand ambitions in the Indian Ocean. Theories such as ‘String of Pearls’ shed light on an overambitious Beijing, whichattempts to encircle India with ports and bases operating under its control.

China has also opened a military base in Djibouti, overlooking the Indian Ocean, in 2017 and it has also gained control of the strategic port of Hambantota in the southern tip of the island of Sri Lanka, the same year.

Chinese presence in Gwadar in Pakistan, where the Maritime Silk Route meets the land route of BRI, is also a matter of concern for India. Moreover, the land route passes through the disputed Gilgit-Baltistan region, which is under Pakistani control, but is also claimed by India.  China has also been developing partnerships with Bangladesh and Myanmar to gain access to its ports in the Bay of Bengal.

Notwithstanding all this, India’s response has been robust and proactive. The Indian Navy has been building partnership with all the littoral states and small island states such as Mauritius and Seychelles to counter the Chinese threat.

India has also been engaged in humanitarian and developmental assistance in the Indian Ocean region, even much before the pandemic, to build mutual trust and cooperation among these countries. Last month, India’s National Security Adviser Ajit Doval visited Sri Lanka to revive a trilateral maritime security dialogue with India’s two most important South Asian maritime neighbours, the islands of Sri Lanka and the Maldives.

Foe’s foe is friend

The Indian Navy holding a Passex with Vietnam in the South China Sea, which is China’s backyard, is a clear message to Beijing. This means, if China ups the ante in the Indian Ocean or in the Tibetan border along the Himalayas, India will intensify its joint exercises and defence cooperation with Vietnam.

A permanent Indian presence in the South China Sea is something which Beijing’s never wish to see materialise in the new future. So, India’s engagement with Vietnam, which has a long coast in this sea, is a serious matter of concern for Beijing.

During this month’s virtual summit, Prime Minister Modi has also reiterated that Vietnam is a key partner of India in its Indo-Pacific vision, a term that Beijing vehemently opposes and considers as a containment strategy against its rise led by the United States.

Milestones in India-Vietnam ties – a quick look-back

There was a time when India supported Vietnam’s independence from France, and had opposed US-initiated war in the Southeast Asian country in the latter half of the previous century. Later, India hailed there-unification of North and South Vietnams.

Even though India maintained consulate-level relations with the then North and South Vietnams before the re-unification, it was elevated to ambassadorial level in 1972, thereby establishing full diplomatic ties that year.

During the Vietnam War, India supported the North, despite being a non-communist country, but without forging open hostilities with the South. Today, India partners with both France and the United States, Vietnam’s former colonizers, in its Indo-Pacific vision, comfortably along with Vietnam as geopolitical dynamics witnessed a sea change in the past few years and decades.

Way ahead

Today, these two civilizational states, sharing religio-cultural links dating many centuries back, is coming together again to ensure a favourable balance of power in Asia. Being a key part of India’s ‘Act East’ policy and ‘Quad Plus’ conceptualisation, Vietnam’s role is poised to increase in the years to come as China continues to project its power in Asia and beyond.

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