Indonesia has approved France's food safety system for grains, fruit and vegetables, France's farm office said, a move that should unblock exports stalled since last year in what traders said was retaliation against a proposed French tax on palm oil.
"After several official exchanges, the Indonesian authorities just formally gave their approval to the French food safety system for plant production," FranceAgriMer said in a note posted on its website on Wednesday.
Indonesia adopted a new food safety law last year under which all grain, fruit and vegetable must be tested by special laboratories before being exported to the country. France, the European Union's largest agricultural producer, had asked that its own testing systems be recognised under the new legislation. In the meantime all exports from France were halted, including wheat shipments.
Exporters had blamed Indonesia, the world's largest producer of palm oil, for hindering shipments in retaliation against the French palm oil tax plan, which was proposed by lawmakers to counter deforestation associated with the crop. But an Indonesian farm ministry official had said the delay was a procedural one, and denied any link to the proposed tax. All proposals to implement an additional tax on palm oil have since been rejected by the French parliament.
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