Trade

In late April, the Indonesian government announced a temporary ban on exports of crude palm oil and its refined products, such as cooking oil. The decision came as a surprise to commercial goods traders as the government had previously stated the ban would only apply to refined products. After the government’s initial statement, prices of crude palm oil significantly fluctuated given uncertainties about what products the ban would cover. Prices have again skyrocketed in light of the most recent announcement.

Since the beginning of the war in Ukraine, the world has seen a wave of food protectionism, as governments seek to protect domestic food supplies in light of surging agricultural prices. As the world’s largest edible oils shipper, providing one third of global supplies, Indonesia threatens to worsen global food inflation with its decision and raises the risk of a full-blown hunger crisis.

The European Union and Japan signed a monumental trade deal in, July 2018, eliminating nearly all tariffs between the entities in one of the world’s largest free-trade deals. The pact, signed in Tokyo, covers a third of the global economy.

The agreement is in stark contrast to President Donald Trump’s trade war and alignment with Russian President Vladimir Putin. Although the leaders didn’t mention him by name, Japanese Prime Minister Shinzo Abe and EU leaders Donald Tusk and Jean-Claude Juncker distanced themselves from Trump’s tactics in a press conference following the deal.

“Politically, it’s a light in the increasing darkness of international politics,” European Council President Tusk said of the deal. “We are sending a clear message that you can count on us. We are predictable – both Japan and [the] EU – predictable and responsible and will come to the defense of a world order based on rules, freedom and transparency and common sense.”

The Japanese government has asked the Chinese government to loan Japan more giant pandas. Amid the growing popularity of the giant panda cub Xiang Xiang, who is on public view at Ueno Zoo in Taito Ward, Tokyo, the Japanese government hopes to realize the loan as soon as possible as a symbol of improved relations between Japan and China.

The Japanese government is considering Oji Zoo and Yagiyama Zoological Park in Sendai as possible breeding facilities for new pandas. Oji Zoo has only one female, Tan Tan, meaning they need a male for breeding. Yagiyama Zoological Park has petitioned for pandas, to cheer up people affected by the 2011 Great East Japan Earthquake.

Giant pandas are extremely popular in each country for their cute appearance and rarity; they have become an important diplomatic tool for the Chinese government. China is likely to decide whether to loan more pandas after carefully examining developments in China-Japan relationships.