# Palm Oil Is at the Heart of the Next Trade War

> The European Commission restricted which palm-based biofuels count toward EU renewable energy goals and introduced a certification system. Indonesia and Malaysia, which together supply 85% of the crop, have warned they are ready to retaliate.

- Date: 2019-04-01 · published 2019-04-01T12:00:00.000Z
- Category: policy · region EU · magnitude high
- Page: https://feedsoft.ai/events/59954-palm-oil-is-at-the-heart-of-the-next-trade-war
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Restricting palm biofuel eligibility in the EU cuts demand for palm oil, and threatened retaliation raises the risk of wider trade disruption.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-03-27 | [Europe-Asia trade war looms over palm oil - Asia Times](https://feedsoft.ai/events/66114-europe-asia-trade-war-looms-over-palm-oil-asia-times.md) | +1.0% | +0.0% |
| PALMOIL | 2018-08-22 | [Solving the palm oil puzzle](https://feedsoft.ai/events/63553-solving-the-palm-oil-puzzle.md) | -0.3% | -2.2% |
| PALMOIL | 2018-01-10 | [EU heading for ‘zero palm oil’ in transport by 2021](https://feedsoft.ai/events/67017-eu-heading-for-zero-palm-oil-in-transport-by-2021.md) | -1.6% | -1.8% |
| PALMOIL | 2019-04-15 | [Palm oil is not a green fuel, says EU \| T&E](https://feedsoft.ai/events/59610-palm-oil-is-not-a-green-fuel-says-eu-t-and-e.md) | +0.1% | -9.1% |
| PALMOIL | 2017-11-27 | [Malaysian Palm Oil Leading the Way Lower](https://feedsoft.ai/events/12717-malaysian-palm-oil-leading-the-way-lower.md) | -2.2% | -6.2% |
| SBO | 2018-03-27 | [Europe-Asia trade war looms over palm oil - Asia Times](https://feedsoft.ai/events/66114-europe-asia-trade-war-looms-over-palm-oil-asia-times.md) | +2.8% | -1.4% |
| SBO | 2019-11-01 | [Rally in palm oil 'red hot, ' analyst says \| The Star](https://feedsoft.ai/events/4284-rally-in-palm-oil-red-hot-analyst-says-the-star.md) | +2.2% | -1.1% |
| SBO | 2018-01-10 | [EU heading for ‘zero palm oil’ in transport by 2021](https://feedsoft.ai/events/67017-eu-heading-for-zero-palm-oil-in-transport-by-2021.md) | -3.1% | -3.0% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2019-03-13/palm-oil-trade-war-looms-as-europe-sets-limits-on-use-in-biofuel

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.