Table of Contents
SHOOT YOURSELF IN THE FOOT
- Idiom
- To damage or impede one’s own plans, progress, or actions through foolish actions or words.
PALM OIL
PALM OIL
INFORMATION
- India is the world’s largest importer of edible oils, and is the biggest buyer of Malaysian palm oil. It bought 3.9 million tonnes of Malaysian palm oil in the first nine months of 2019, according to data compiled by the Malaysian Palm Oil Board.
- Malaysia’s exports depend a lot on palm oil and India is one of the largest buyer of Malaysian palm oil
MALAYSIA – INDIA TRADE
- Export: $6.4 billion
- Import: $10.8 billion
FOR CONTEXT
- China is Malaysia’s largest trading partner, followed by Singapore.
- Trade between the countries hit US$55.7 billion in 2015-16.
- (According to latest date trade between two countries is around 60 billion dollars)
MALAYSIA’S RESPONSE
WHAT MALAYSIA’S PRIME MINISTER SAID
- Mahathir said on Sunday his government will “study the impact of the action taken by India“, the government-owned Bernama said.
- “They are exporting goods to Malaysia too. It’s not just one-way trade, it’s two-way trade,” Mahathir was quoted as saying in the report.
OTHER VOICES FROM MALAYSIAN GOVERNMENT
- Malaysia is considering raising imports of raw sugar and buffalo meat from India, potentially easing trade tensions after reports New Delhi could restrict Malaysian palm oil imports following the country’s criticism of India’s actions in Kashmir.
WHAT MALAYSIA’S PRIME MINISTER SAID
- “The minister views with concern recent news reports regarding unfavorable bilateral relations between Malaysia and India as both countries have enjoyed strong and comprehensive relations for more than six decades,” the statement said, referring to Teresa Kok, the Malaysian minister in charge of the palm oil portfolio.
- “Malaysia is open to further trade negotiations to address India’s concerns on the trade imbalance between both countries.”
COMPLICATIONS FOR INDIA
- India has signed a FTA with ASEAN
- Malaysia is a part of ASEAN
- Palm oil is a part of the FTA
- Although increasing tariffs on Malaysian Palm oil substantially will not directly impact the entire FTA between India and ASEAN it could damage India’s image as a country that is open to free market
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