Geopolitical Dimensions of Global Crude Palm Oil Trade: A Review on Trade Policy, Environmental Governance, and Strategic Competition

This journal examines the geopolitical dimensions in the global trade of crude palm oil (CPO), especially when the palm oil market is no longer determined solely by production efficiency, but also by trade policies, environmental regulations, and national strategies. Through a qualitative literature review of Scopus and Web of Science publications from the period 2000–2026, this study highlights four main issues: the dynamics of the vegetable oil market, tariff and non-tariff instruments, substitution competition with other vegetable oils, and the narrative of palm oil as a strategic commodity. The findings indicate that policies such as India's import tariffs, Indonesia's biodiesel mandate, EUDR, and RSPO and ISPO certifications directly affect market access, supply chains, and the position of smallholders. The implication is that producing countries need to strengthen downstream processing, South-South market diversification, trade diplomacy, and more inclusive sustainability governance to maintain palm oil competitiveness.